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Sequoia, others commit $11m to India's Zoomcar

  • Holden Mann
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Indian car rental company Zoomcar has raised $11 million in funding from existing investors Sequoia Capital and Empire Angels, with participation from newcomer Nokia Growth Partners.

The company integrates mobile software into its rental packages, allowing users to book cars online and activate their rentals with a signal from their mobile phones. The mobile app also scans the customer's driver's license and other required documents, removing the need for service staff.

Currently the service is offered across 250 pickup locations in six cities. With the new funding, Zoomcar plans to expand to an additional 15 cities and grow its fleet to 7,000 cars, according to an Economic Times report linked from the company's Twitter feed.

In a separate transaction, the company also raised $1 million from InnoVen Capital, formerly SVB India Finance prior to its acquisition by Temasek earlier this year. With the most recent funding, Zoomcar's total funds raised comes to $23.5 million, including a prior investment of $8 million by Sequoia in 2014.

India's personal transportation market has become a popular destination for VC funds. Earlier this year taxi booking service Ola paid $200 million to acquire rival TaxiForSure; both companies are VC-backed.

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