The round would be big news for India as Ford expands its investments into a portfolio for next generation cars
Over the weekend, it was reported that India-based Zoomcar is on the verge of closing a US$25 million Series C round that Ford will lead with a US$15 million investment. This more than doubles their finances, having raised just over US$21 million in previous rounds.
Besides Ford Smart Mobility, the round’s investors include Sequoia Capital and Reliance Venture Management, according to Business Insider. They also write that this is Ford’s first major investment in the country. The company is on pace for US$25 million in revenues this year, which brings it close to profitability: Zoomcar calls itself “EBIDTA-level profitable in several cities,” meaning in those cities its operations would be profitable if not for taxes, interest and depreciation.
The startup operates over 1,600 cars, claiming more than 2,100 rides a day and over 860,000 users. They offer different services such as those related to airport rides, train station pickups and general commuting. Zoomcar also recently added a marketplace option, which MediaNama termed a pivot.
Also Read: Self drive rent-a-car booking app Zoomcar secures US$11M
Ford Smart Mobility functions as Ford’s venture capital arm for new technologies, connected to the company’s internal research arm Ford Mobility. Smart Mobility was formally announced only this past March with locations at the company’s corporate headquarters in Dearborn, Michigan along with an office in Palo Alto. It is the group’s third investment so far following a seed round in 3D mapping startup Civil Maps and co-leading a Series C investment in unicorn company Pivotal Software, also based in Palo Alto. Those investments point in the stated direction of the company to focus on autonomous rides, data and connected cars. Sequoia already invests in car-related startups in Asia such as Cheyipai in China and CarDekho in India.
Co-founder and CEO Greg Moran, CFO Paritosh Gupta, and CTO Prashant Verma lead Zoomcar, which is based in Bengaluru.
The article Ford and Sequoia plant $25 million into Indian rental startup Zoomcar first appeared on Geektime.
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