Indian mobility startup Zoomcar raises $30m from Sony, others

Indian self-drive mobility startup Zoomcar has raised US$30 million as part of its ongoing US$100 million series D round led by existing and new global investors such as Sony Innovation Fund, the venture capital arm of Japanese electronics company Sony.

Zoomcar CEO Greg Moran / Photo credit: Zoomcar

Zoomcar said it plans to use the new funds to invest in growth, technology, and data science, focusing on improving its IoT layout in addition to its shared subscription service.

“With the growth of shared economy across the globe, subscription-based car ownership is becoming an increasing trend,” the company said in a statement.

Zoomcar introduced India’s first P2P-based marketplace for cars with the launch of its shared subscription mobility model in 2018. The startup said that during Q3 2019, it hit a 15,000 car subscription run rate through its shared mobility platform.

In addition, the company said it looks to penetrate the Indian market more deeply to have about 100,000 vehicles on the road within 18 to 24 months. Currently, it claims to be the market leader in the country’s self-drive space, with over 10,000 cars in its fleet, operating in more than 45 cities across India.

Founded in 2012, the company allows users to rent cars by the hour, day, week, or month. According to the statement, Zoomcar is India’s third-largest automobile player in terms of volume moved with its wide range of partnerships with automobile makers such as Nissan, Toyota, Volkswagen, and Renault.

It recently launched a vehicle model-agnostic driver score feature for the passenger car segment, powered by AI and machine learning technology.

The company previously secured US$40 million in series C money in a round led by Mahindra and Mahindra. The round saw participation from existing investors Ford Smart Mobility, Sequoia Capital, Empire Angels, and Nokia Growth Partners, among others.