India's Zoomcar has raised $40 million Series C round. The Bangalore-based Zoomcar was founded in 2013 and operates an on-demand car rental service. The funding was led by Mahindra & Mahindra, a 70 year old Indian corporation that specializes in automotive. Zoomcar confirmed Ford and other existing investors also took part in the round. CEO and co-founder Greg Moran added that the round is still open and may even extend the period with other investors coming considering partaking.
The current deal has Zoomcar valued around $170 million according to Mahindra & Mahindra. The company has confirmed they have bought a 16 percent share in the start up worth roughly $27.5 million. To date, Zoomcar has raised around $100 million from investors. The previous Series C raised $24 million and was led by Ford in 2016 with an undisclosed investment from China's Cyber Carrier injected later that year. Other notable backers include Sequoia Capital, Nokia Growth Partners, FundersClub and a handful of angels including former US treasury secretary Larry Summers and ex-Infosys CFO T.V. Mohandas Pai.
Mahindra & Mahindra is a $14 billion company which focuses on automotive, motorcycles, agricultural machines and the like. The firmed began as a manufacturer for Jeep but has expanded quite considerably since. The company is working with Zoomcar to distribute its electric vehicles in the shared mobility space. Zoomcar recently launched Mahindra e20Plus electric vehicles. The company said they are expecting to launch another 500 Mahindra electric vehicles in the first half of 2018. "We are confident that this partnership with Zoomcar will help further our vision to transform mobility in the country, thereby creating a more connected ecosystem," said Dr. Pawan Goenka, managing director of Mahindra & Mahindra. Zoomcar currently operates in 27 cities in India.