Self-drive car rental service Zoom secures over $1.6M in seed funding led by New York-based Empire Angels
Bangalore-based ZoomCar India Pvt Ltd, which runs a membership-based, self-drive car rental service Zoom, has secured more than $1.6 million in a seed round of funding, led by New York-based Empire Angels with participation of existing investors to scale up its fleet as well as develop technology.
Other investors who put in money in this round include San Francisco-based VC firm Funders Club, Basset Investment Group and a few other individuals, including earlier investors such as former US SEC Commissioner Lady Barbara Judge.
"We have had a rolling close, with over $600,000 having been raised previously and almost $1 million raised now. Our investors are spread across India, the US, the UK, France, Spain, Belgium, Germany, Austria, Singapore, Panama and Australia," Zoom co-founder David Back told Techcircle.in.
In July this year, Bangalore-based angel investor Rajkumar Elango had invested $200,000 in Zoom. Former US Treasury Secretary and former Director of the US National Economic Council Larry Summers is also an investor in the firm.
Zoom was founded by two Americans David Back and Greg Moran as an India-focused venture under the US-based parent Zoomcar, Inc. It launched operations in Bangalore with seven vehicles in February this year and has now grown to a fleet of 52 vehicles. Zoom operates a mix of BMWs, Ford Figo, Mahindra Scorpio, Volkswagen Vento and Mahindra Reva E2O vehicles and charges customers on hourly or daily basis.
The rental starts at Rs 199 per hour or 1,999 per day for Reva E2O, while it is Rs 999 per hour or 9,999 per day for BMW 3-series. These rates cover the entire trip, including fuel, insurance, roadside assistance and tax.
Zoom also provides in-car navigation, including real-time traffic updates, assistance in locating parking and location-based service apps at no additional charge. The firm also offers 35 per cent discount on all vehicles, including BMWs, from Monday to Thursday. Currently, Zoom has five vehicle locations around Bangalore.
(Edited by Joby Puthuparampil Johnson)