Zoomcar posts 31% rise in FY18 operating revenue, loss widens
Self-drive car rental startup Zoomcar India Pvt. Ltd reported a significant rise in operating revenue for the year through March 2018 amid widening losses, its filings with the Registrar of Companies show.
The company registered a 31% increase in operational revenue to Rs 155 crore for 2017-18 from Rs 118 crore the previous year. However, losses grew 10.2% to 116.4 crore for 2017-18 from Rs 105.6 crore the previous year. Total expenditure rose from Rs 225.7 crore to Rs 274 crore during this period.
Co-founded by Greg Moran and David Back in 2012, the firm is part of new-generation of transport services promoting shared mobility.
The firm follows a hyperlocal model which allows customers to pick up cars from designated locations after booking online.
The company has received investment of $100 million in all so far, with the latest round being a $40 million Series C funding from automotive major Mahindra & Mahindra in February last year. The deal valued Zoomcar at around $172 million.
Its other backers include Ford, Sequoia Capital, and angel investors such as former chief financial officer and human resources head of Infosys TV Mohandas Pai and former US treasury secretary Lawrence Summers.
Headquartered in Bengaluru, Zoomcar operates in nearly 35 cities across India. In 2017, it introduced its marketplace model Zoomcar Associate Programme (ZAP), which allows users to buy vehicles on the company’s behalf and rent them out when not driving. In February 2018, Zoomcar launched a car subscription programme under ZAP.
Zoomcar’s local rivals Drivezy and Revv have raised investments in recent times. In November, Drivezy raised $20 million in its Series B round led by existing Japanese investor Das Capital, Axan Partners and venture firm IT-Farm while motorbike company Yamaha came in as new investor.Revv raised an undisclosed amount from Hyundai Motor Company in August.