Bengaluru-based car rental service provider, Zoomcar has raised $5 million in series B round from existing investors Sequoia Capital and former Infosys CFO Mohandas Pai. The company redesigns its business model following the exit of Co-founder David Back.
Three year old startup had raised $8 million series A round in October 2014. The company was launched in February 2013 by David Back and Greg Moran, with 7 vehicles at a single location and now has grown to 1100 cars, and is active in Bangalore, Pune, Delhi, Mumbai, Chennai, and Hyderabad.
The site provides a filter based search for the available cars on the basis of location, pickup and return, date and time. The company also launched its app for Android and iOS users. Customers can book their cars online as well as on apps on the basis of hour, week, day and month.
Zoomcar’s direct competitor is Carzonrent, which acquired a taxi sharing service, Ridingo in April this year.
Recent investments in the travel segment include Ola Cabs, raised over $185 million in a total round of $315 million in series E round of funding led by DST Global. Also, it announced the acquisition of TaxiforSure in mid-March 2015. Uber added $1 billion more to its $1.8 billion series E round in February.