Bangalore-based ZoomCar India Pvt Ltd, which runs car rental service Zoom, has raised funding from angel investor Rajkumar Elango, as confirmed by the Co-Founder & CEO Greg Moran. With this round, total funding raised by Zoom has reached USD 525K.
Prior to this round of funding it had raised USD 215k from Empire Angels, New York and an investor group based out of U.K led by Lady Barbara and earlier this year it had raised USD 30k in angel funding from Larry Summers, a former director of the United States National Economic Council. The latest funding was first reported by Techcircle.
The company will be using these funds primarily for expanding its vehicle fleet, building team, and bolstering technology capabilities.
Zoom has over 2,200 members and nearly 600 reservations till date. It is expected that Zoom will double its fleet size in the next 6 weeks. Currently it has a fleet of 30 vehicles consisting of 16 Ford Figos, 12 Mahindra Scorpios, and 2 BMW 3 Series’.
Started its services back in February with only 7 vehicles, the company now has 3 vehicle sites across Bangalore i.e. Malleshwaram, JP Nagar, and Ulsoor.
The company had been very limited in terms of marketing up-till now, and has initially worked with Orion Mall and Cafe Coffee Day to raise awareness about its services. “Since March, we have done scarcely any marketing with very minimal Ad Words. We expect to do very limited marketing until we have a much larger fleet size with more locations across the city (probably at least 75 cars across 7-8 sites),” said Greg.
Recently, it has also integrated payment gateway on its website and working to redesign the portal.
Zoom make revenues by charging customers on the basis of hour/day of usage.
Few other players in the same space include Hertz’s Indian franchisee, Carzonrent India, Mercury Car Rentals (Avis) and International Travel House and soon US Based private car hire online platform Uber might be expanding its operations in India. Recent funding in the same category include, TaxiForSure which had raised USD 4 million in venture capital from Accel Partners, Helion Venture Partners and Blume Ventures.