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Car rental platform Zoomcar is eyeing a $500 million round of funding led by Mahindra and Mahindra, Mint reports. The funding will be done through debt and equity financing, a source told the paper. Mahindra is expected to invest $300-400 million in ZoomCar India, the report added. Moneycontrol could not independently verify the news.
Zoomcar’s valuation will likely go up to $1 billion if 40 percent of the financing is done through equity, according to the report. Zoomcar CEO Greg Moran told Mint that the company was looking for a fresh funding of $500 million but did not specify the investors.
"Zoomcar is in advanced talks to raise up to $500 million of equity and structured debt from leading global financial investors. The expectation is for fresh investors to lead the round along with participation from existing investors. This transaction will close in the current quarter," the company told the paper.
Zoomcar's existing investors from the US are also likely to participate in the financing, a source told the paper. The bulk of the funding will be used to purchase vehicles, the report added.
The self-drive car rental service is looking to add 3 lakh more cars to its platform in the next 2-3 years It is targeting 25 million bookings in the same period, Moran told Mint.
Zoomcar currently has 7,000 cars and 300 electric vehicles, the report said.
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