- Auto Industry
Ford is funding Zoomcar, again!!
In this years latest funding season, Ford Motor Company is seen to be investing deeply in the car rental industry in India by investing a whooping $25 million in the company with Reliance Venture Asset Management and Sequioa Investment being the other minor investors. Ford's initial round of investment saw around $15 millions flowing in for the operational requirements of Zoomcar.
Currently, Zoomcar rules the car rental industry pan India and is one of the few startups running in this niche market that are said to have some hopes for the future. Currently Zoomcar is operational in all major metropolitan cities in the country including Delhi, Mumbai and Chennai with its new shop opening in Kolkata soon. The car rental giant also wishes to expand their reach to tier 2 and tier 3 cities in the coming months making use of their new investments.
Zoomcar is said to be highly profitable in the country and is known to become a loss free organisation in the next three months of operation. Nonetheless, it is still the most expensive car rental service provider if you look from the customer perspective comparing its services and ease of use with JustRide which recently closed its operations in Mumbai pertaining to lack of funds and other resources.
The car rental industry in India is expected to have a large scope in the Indian economy in the coming few years, though the industry is also seen to be one of the most fragile ones.