Zoomcar co-founder David Back resigns
The exit will not impact the self-drive car rental company’s growth trajectory, according to CEO Greg Moran
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Zoomcar co-founder David Back has resigned from the self-drive car rental company, and has decided to move back to the US because of personal reasons.
Back quit Bengaluru-based ZoomCar India Pvt. Ltd on 12 May, according to documents filed with the Registrar of Companies (RoC).
“It has been an amicable transition for David,” said Greg Moran, co-founder and chief executive officer (CEO) of Zoomcar. According to Moran, Back’s exit was triggered by some personal and professional reasons. “David has always focused on early-stage opportunities and he will continue to do so.”
“I have been the CEO of the company since the beginning and this exit will not impact the company’s growth trajectory,” he added.
According to Moran, Back will continue to hold his stake and board position in US-based Zoomcar Inc., the parent of Zoomcar India.
Back used to head the company’s marketing and business development division. “We have recently hired a vice-president (marketing) and have made several senior executive hires,” said Moran, adding that the company has grew threefold month-on-month during the last quarter.
Zoomcar India is in early talks to raise fresh capital to fuel its growth and expand to new cities.
The company founded by Moran and Back has raised $12.5 million since its start in 2012. In October, the company raised close to $8 million from Sequoia Capital, former Infosys Ltd chief financial officer T.V. Mohandas Pai, Abhay Jain of the Manipal Group, and a few other strategic investors.
Moran on Thursday denied a report by news website NextBigWhat that said the company has raised Rs.31 crore from its existing investors in an interim round of funding. “We are seeing a lot of investor interest but we have not closed the round yet,” said Moran.
Zoomcar operates a fleet of 1,200 self-drive rental cars. It plans to expand to 10 more cities and almost triple its fleet to 3,500 cars by December this year, Mint reported earlier this week.
The company is also looking to add luxury and automatic cars over the next few months.
The Indian personal transportation sector is witnessing strong investor interest.
Carzonrent India Pvt. Ltd, a car rental company, estimates the Indian cab industry to be worth Rs.54,000 crore, of which only 8-10% is organized.
ZoomCar first started its services in Bengaluru. The cars are stationed at various locations in the city, and can be picked up after ordering online.
Zoomcar is currently present in Bengaluru, Pune and the national capital region centred on Delhi, logs more than 20,000 bookings per month.
Modelled after US-based ZipCar, Zoomcar allows its users to book a car, make the payment, locate the vehicle and even unlock it using a single app without the help of any executive.
Given that the Indian market is still new to the self-drive concept, the company has fleet executives to assist customers if required.
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