Indian self-drive car rental company Zoomcar has raised another INR 41 Cr ($5.5 Mn) from its US-based parent company Zoomcar Inc. Prior to this, Zoomcar Inc had infused INR 5.27 Cr ($717K) in February and INR 8.27 Cr ($1.1 Mn) in January 2021 in the company, taking the total infusion to INR 54.5 Cr ($7.4 Mn) in 2021.
According to the company’s regulatory filing with the ministry of corporate affairs, Zoomcar has allocated 82,566 equity shares to Zoomcar Inc at a face value of INR 10 each and at a price of INR 4,967 ($67.6) per share on right issue basis to raise INR 41,01,05,322 ($5.5 Mn). The shares were allotted to Zoomcar Inc on April 28, 2021.
Zoomcar’s previous regulatory filings revealed that it was planning to raise INR 36.59 Cr (roughly $5 Mn) and had offered to issue Series P2 Preference Shares to select investors, upon conversion of their Optionally Convertible Debentures (OCDs). The Series P2 shares will be allotted at a face value of INR 10 ($ 0.14) per share and a premium of INR 2,431 per share.
The OCD holders include Mahindra & Mahindra Limited, which will be allotted 1,03,06 Series P2 preferred stock. WeWork India CEO Karan Virwani, Sandhar Technologies’ Jayanth Davar, Monica Davar & Neel Davar as well as angel investor Srikanth Subramanian have been made the offer by the company.
Founded in 2012 by David Back and Greg Moran, Bengaluru-based Zoomcar has, to date, raised $193.6 Mn in 18 funding rounds from 35 investors. According to Crunchbase, the company’s last reported funding round was on February 8, 2021, a venture round where it raised $39.8 Mn. The company had raised $30 Mn for its Series D round from Sony Innovation Fund in January 2020.
Notably, the year 2020 was a tough one for all companies operating in tour and travel as well as the mobility segment. Zoomcar too was one such company that found itself surrounded by refund claims and nil revenue flow, as India went under a three-month-long lockdown. The company decided to hold off all refunds to ensure runway for its survival, but that led to resentment against the company.
Zoomcar reported a revenue of INR 294.6 Cr in the financial year 2020, representing a 10% increase from the previous year’s INR 266.6 Cr. The company’s losses, on the other hand, almost doubled to INR 424.3 Cr from INR 201.9 Cr in FY19. The company’s expenses increased 35%, from INR 468.5 Cr to INR 629.4 Cr, in the same time frame.