Mahindra Invests up to Rs 176Cr in Zoomcar in Push to Promote Shared Mobility and Electric Vehicles
When converted to common stock of Zoomcar Inc on a fully diluted basis, would constitute approximately 16 percent stake in Zoomcar Inc
Mahindra & Mahindra, part of the $19 billion Mahindra Group, announced that it would be investing in Zoomcar India Private Limited and in Zoomcar Inc, its US incorporated holding parent company, in keeping with the Mahindra’s thrust on the shared mobility business.
Under the aegis of the deal, Mahindra Group would invest up to Rs 176 crore in Zoomcar India or Zoomcar Inc. which, on an as converted to common stock of Zoomcar Inc on a fully diluted basis, would constitute approximately 16 percent stake in Zoomcar Inc.
Mahindra has been keen to invest in the shared mobility space as a part of its strategy to promote and participate in sustainable mobility solutions, including multi modal urban mobility. This is with the objective of enabling improved livelihoods and lifestyles of people, thereby enabling them to RISE. To that end, Mahindra has been promoting electric vehicles along with the promotion of shared mobility. This investment in India’s leading self-drive shared mobility company will enable the company to further its objectives in this area.
Dr Pawan Goenka, managing director, Mahindra & Mahindra said, “At Mahindra, we are playing a pioneering role in the shared mobility business and are looking forward to an impetus in it through this investment in Zoomcar. We are confident that this partnership with Zoomcar will help further our vision to transform mobility in the country, thereby creating a more connected ecosystem”.
Greg Moran, cofounder and CEO of Zoomcar said, “We are incredibly excited to welcome the Mahindra team on board for this next phase of growth, within the Indian self-drive mobility space. Our collaboration with Mahindra dates back to 2013 when we first kicked off in Bangalore. Most importantly, Mahindra shares Zoomcar’s vision for multi-modal urban mobility and we look forward to leveraging their diverse platform to help accelerate the transformation to a shared, electric mobility future for India”.
Earlier in 2017, Mahindra and Zoomcar announced a partnership to introduce electric vehicles into the shared mobility space. Zoomcar recently launched Mahindra e20Plus electric vehicles across Mysore, Bangalore, and Hyderabad. Going forward it expects to add another 500+ Mahindra EVs across more than 20 cities pan-India, in the first half of 2018.
Zoomcar is India’s first self-drive mobility platform, with the introduction of car sharing services in 2013 and the introduction of cycle sharing services in 2017. With a strong focus on the mobile experience, Zoomcar allows users to rent cars by the hour, day, week, or month. Cycles can be rented in increments of 30 minutes. Founded in 2013 and headquartered in Bangalore, Zoomcar operates in nearly 30 cities across India. In 2017, Zoomcar introduced India’s first peer2peer based marketplace for cars with the launch of ZAP. In February 2018, Zoomcar inaugurated India’s first car subscription program under the ZAP umbrella. Zoomcar offers a diverse mix of vehicles with Mahindra and Ford both forming a significant portion of the overall mix.
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