Zoomcar is India’s first online car rental company launched in 2013 in Bangalore, India. In India where companies focused on chauffeur-driven rentals, Zoomcar came up with this new Idea of self-drive car rentals in India. The company operates a fleet of over 3,000 vehicles in 23 cities across the country.The company plans to expand in 20+ countries in 2-3 years as per co-founder Greg Morgan.
Zoomcar was founded by an American Duo David Back & Greg Morgan. They met while studying at the University of Pennsylvania, where both were pursuing their graduation. They both went to business school, Morgan at the University of Southern California and Back at the Judge Business School at Cambridge University.
Both David Back & Greg Morgan dropped out of business school to move to India and pursue Zoom. David resigned from the company in 2015 and moved back to America.Zoom official launches its operation in 2013 from Bangalore with the capital of 215 thousand dollars and a fleet of seven cars.
Zoomcar has raised a total of 45.2 million dollars from group of investors in total 6 round of funding.
In October 2013 the company raised 1.6 million dollars as Seed funding from Nurzhas Makishev, Barbara Judge, Basset Investment Group, FundersClub, Empire Angels, Lloyd Thomas, Microsoft Accelerator.
Series A: In Series A round of funding held in October 2014 Zoomcar raised 8 million dollars from some of the existing investors and new investors like Athene Capital, VentureSouq, Pranav Pai, Mohandas Pai, Abhay Jain, Empire Angels, FundersClub, Basset Investment Group, Sequoia Capital, Globevestor.
In July 2015 company recieved11 million dollars as a venture capital from Empire Angels, Nokia Growth Partners (NGP), Basset Investment Group, Sequoia Capital, Fabrice Grinda, Jose Marin.
Series B: This round held last year in July in which Zoomcar managed to raise 24 million dollars OurCrowd-GCai, VentureSouq, Ford Smart Mobility, Nokia Growth Partners (NGP), Empire Angels, Reliance Venture Asset Management, Sequoia Capital.
Zoomcar Business Model:
ZoomCar provides cars on rent on hourly, daily, weekly or monthly basis. They carry a huge range of cars right from Swift, City, Ecosport, Fortuner, Ford Figo and Honda Amaze to BMW 3 series and Mercedes-Benz A-Class sedans.
Zoomcar divided its cars into 3 segments which are zoom light, zoom classic and zoom XL. The Ideal choice for Long Outstation Trips, Multiday Bookings, and Office Commute in ZoomLite. Then there is Zoom Classic that is ideal for General Usage and Weekend Trips. For long trips or use the car just for the Joy of Driving you can rent Zoom XL.
Zoom Car buys 75% of the cars in its networks through loans from banks and remaining are leased from large companies. They also Started an initiative where individuals invest in cars and get into a 30-month Lease Agreement with ZoomCar to lease the car to them.This Initiative is called ZAP. ZoomCar takes 30% cut of the revenue earned from the car, against all the business, and for all the operational support that ZoomCar will provide.
For now, ZoomCar’s audience has been restricted to mainly tier-1 and tier-2 metros in India.hey have opted for an approach of maintaining a very hyperlocal and dense network in existing cities, rather than going far and wide.