Zoomcar, Bengaluru-based, self-drive car rental startup, has raised $11.35 million across multiple forms of equity infusion from its US-headquartered parent as well as debt funding from Trifecta Capital and others, reported Inc42.
The company will use the funds towards technology development, customer acquisiton, publishing and other general corporate purposes.
One of the conditions for the merger is that the new ownership structure should be comfortable to all the debt lenders, adding that all the assets and liabilities will be put on the table. The merger will only be approved if there is enough money to cover debt and its repayments.
The company claims to have a 70% market share with over 7,000 cars, catering to over 2000 rides every day. By the end of 2019, it aims to have 20,000 cars.
Zoomcar India’s loss widened by 10.2% in the year ended March 2018 as compared to FY17 due to increasing costs of doing business. The car-rental startup’s expenses rose to $39.22 Mn (INR 268 Cr) in FY18, from $32.20 Mn ( INR 220 Cr) in FY17. Meanwhile, the annual revenue rose to $22.47 Mn (INR 153 Cr ) from $17.17 Mn (INR 117 Cr) in the previous year.
Earlier this year it was reported that Zoomcar India is in talks to raise around $500 Mn (INR 3,421 Cr) in a funding round led by automaker Mahindra & Mahindra. It was also stated that the startup’s valuation may go up to $1 billion if at least 40% of the deal is completed via equity.
Over the last one year, the company has raised INR 35.50 Cr debt from Trifecta, Kotak, Blacksoil Capital and Mahavir Dwellers. Further, the company raised nearly INR 66 Cr from its parent company. The company also raised INR 11.74 Lakh in debt from Mahindra and Mahindra.