Zoomcar, a vehicle rental startup in India has received a funding of $24 million from a subsidiary of Ford Motor Company. The business, which operates from Bengaluru, allows users to rent its vehicles for as little as an hour at a time, a model similar to the U.S.’s Zipcar Inc., which Avis Budget Group acquired for about $500 million in 2013.
Founded in 2013, by an American Greg Moran, Zoomcar currently has more than one million users and almost 2,000 cars across seven Indian cities. As of now, the startup has raised a total amount of $46 million.
This latest round of funding was led by Ford Smart Mobility LLC, a unit formed by Ford in March to invest in emerging transportation technologies. Among other existing investors were U.S. venture-capital firm Sequoia Capital. Following this investment, Zoomcar has plans to expand a new marketplace feature that allows individuals to purchase cars and rent them out using the platform.
According to John Larsen, Director at Ford Asia Pacific Mobility:
As Ford expands its business to be both an auto and mobility company, we are pursuing a long-term vision to develop services and solutions that make it easier for consumers to move through cities using multiple modes of transportation. Our investment in Zoomcar will help strengthen the company’s role in shaping India’s developing mobility space and provide new transportation options to help make people’s lives better.
This not the first time that Ford Smart Mobility firm has invested in Zoomcar. Earlier at the end of 2014, it had funded $8 million moving further in May 2015 the company raised an amount of $11 million.