Zoomcar had raised $11 million from various investors such as Nokia Growth Partners and Sequoia Capital last year. Now the company is planning to expand more aggressively into tier-1 cities and is currently looking to raise more funds from both its existing as well as new investors.
“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,” said Greg Moran, CEO of Zoomcar, on the sidelines of the recently held Surge Conference in Bengaluru.
Zoomcar’s current backers include Infosys ex-CFO Mohandas Pai, former US Treasury secretary Larry Summers and British businesswoman Lady Barbara Judge. For now, Zoomcar also wants to focus on existing tier-1 markets such as Mumbai, Delhi and Bengaluru and does not want to spread itself thin by expanding into multiple tier-2 cities, said Moran.
“We’re trying to keep growing, keep scaling. At the core, that’s really it but we’re developing a lot of new features and products that are around self-driving, which are going to give natural enhancements to the customers. I think we’ll go a lot deeper in our existing markets,” said the startup’s CEO. “In India, the top 4-5 cities will give you almost all your revenues. So you have to focus on those markets first. We’re not going to follow a strategy like Ola and get into a 100 cities,” he added.