Zoomcar, the Bengaluru-based self-drive car StartUp raised $40 million in funding led by Mahindra and Mahindra. The Round C funding saw other existing investors also take part in it.
The investment by Mahindra would give it a 16 per cent stake in the self-drive company, with Mahindra keen to be a part of the country’s growing sustainable mobility platform.
Zoomcar will utilise the money to improve its technology in addition to expand across the country. The two companies have shared a relationship since 2013, with Zoomcar recently adding electric cars from Mahindra in its fleet.
It is expected that over 500 electric vehicles will be added to Zoomcar’s stables in the coming months.
This round of funding takes the overall sum raised by Zoomcar to around $95 million, with other major investors being Sequoia Capital, Ford, Nokia Growth Partners, and Empire Angels.
With over 3,000 vehicles in its fleet, Zoomcar has begun to scale operations, having recently launched a monthly subscription platform named ZAP Subscribe. In addition to cars, it also offers cycle sharing services under the name PEDL, with this service currently available in 10 cities. The company aims to extend this service to 75 cities by the end of the year.