Self-drive car rental platform Zoomcar is in talks with automaker Mahindra and Mahindra to raise USD 500 million, said two people who are aware of the matter, according to a Mint report.
Mint quoted one of the sources saying Mahindra will invest around USD 300-400 million in Zoomcar.
“Zoomcar is in advanced talks to raise up to USD 500 million of equity and structured debt from leading global financial investors. The expectation is for fresh investors to lead the round along with participation from existing investors. This transaction will close in the current quarter," the company said.
According to an analyst Zoomcar’s valuation will get close to a billion dollar if 40% of the deal is financed through equity. It was valued at USD 170 million in February last year during its Series C round when Mahindra led the USD 40 million round.
In October 2017, the company started its bicycle-sharing service Pedl. It shut down Pedl in early 2019 and sold around 2000 bicycles to public at large in Bengaluru.
According to an ET report, ride-hailing giant Ola will soon launch self-drive car rental service in major cities in India. It will invest USD 500 million to launch this service and around 10,000 vehicles, including luxury sedans and SUVs will be deployed.