Zoomcar looks to expand in tier-1 cities, may raise $50 million in next round

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Mudit Singhal, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

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2015 being the year for start-ups, Zoomcar had their own share of luck and fortune. They raised $11 million from various investors, namely Nokia Growth Partners and Sequoia Capital. Now being 2016, they look to expand more aggressively into tier-1 cities and are currently looking to raise more funds from both its existing as well as new investor.

Zoomcar CEO, Greg Moran quoted “Certainly this year, we’re going to add some funding to the kitty. Working capitalwise, we don’t need tonnes of money. We’re looking to grow efficiently — we don’t believe in burning money for our investments, so we have a very modest approach there.” Two people familiar with talks said that the company would raise $40-$50 million in the next round of funding.

With Zoomcar looking to focus on existing tier -1 markets of Delhi, Mumbai and Bengaluru seems a wise approach seeing what has happened to start-ups in other industries. Customer satisfaction being the core for success, its the experience of self-driving which Zoomcar looks to provide to its customers.

“Last-mile connectivity” doing the talks recently foraying into two-wheeler segment was also not rules out by the Moran and focusing on the core competency is what Zoomcar looks out for.

 

References

http://economictimes.indiatimes.com/articleshow/51114138.cms

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