Zoomcar India’s loss narrows to Rs100.4 crore in 2016-17
Bengaluru: Self-drive car rental start-up Zoomcar India Pvt. Ltd’s loss narrowed to Rs100.4 crore for the year ended 31 March from Rs101.4 crore in the previous year, according to company documents sourced from Tofler.
Total revenue grew 35% to Rs121.2 crore from Rs89.82 crore in the previous fiscal.
The company’s expenses rose 16% to Rs 221.6 crore in the year ended March. It spent Rs28.2 crore on employees and Rs14 crore in finance costs.
Zoomcar currently has a fleet of 2,600 vehicles, a mix of company-owned vehicles and those leased from third parties. It has a customer base of more than 2 million on its platform. It plans to shift completely to a marketplace model by the end of the year and sell all vehicles in its fleet over time, the company said in January.
“(Cost) is certainly a consideration, but not the prime consideration. This provides for a much better customer experience and allows us to scale more. The biggest challenge has always been various supply constraints,” founder Greg Moran said at a press conference in January.
Zoomcar launched an associate programme in April last year, which allowed people to lease their own cars to its platform under a revenue-sharing model. Zoomcar charges a 25% commission on revenue that its associates make. The company had expanded from seven cities in 2016 to 24 cities in 2017. Zoomcar charges users an hourly rate for vehicles and allows them to book a car, make the payment online, locate the vehicle and unlock it using just its smartphone app.
In August, the company launched a one-way intercity self-drive service that lets users travel from Point A to Point B without having to return the vehicle to the source of rental. The service, which was launched in Coimbatore initially, will be made available across 24 cities in the coming months.
Zoomcar has raised more than $45 million in funding till date. It secured $24 million in a Series B round in August 2016 led by Ford Smart Mobility Llc.
Bengaluru-based Drivezy is a recent entrant in the vehicle rental space. The company raised $10 million led by Das Capital, Axan Partners, and IT Farm last month. Unlike Zoomcar, Drivezy is a peer-to-peer vehicle rental platform, and sources vehicles from users registered on its platform.