Bangalore based car rental service Zoom which launched recently has raised $230,000 of seed capital from high net worth investors and angel groups in the US, UK, and India. Marquee investors who participated in the round in January include the Empire Angel Group based out of New York and Barbara Thomas, Lady Judge from UK.
Zoom is a membership-based, hyper-local self-drive service that allows individuals to hire cars on hour or daily basis. Currently, the company offers self drive vehicle to its members, and has seven vehicles with a mix of sedan like Ford Figo and Mahindra Scorpio SUVs. Zoom charges customers on an hourly and daily basis.
The company is looking to raise an additional $100-150k in the next 6-8 weeks to help finance its expansion in Bangalore. “After raising the above capital, we would be targeting a $5-6M venture round in July/August time frame. This will allow us to blanket Bangalore and then also expand into Mumbai and Delhi,” said Greg Moran, CEO, Zoom.
Zoom charges Rs 199 per hour and Rs 1999 per day for a Ford Figo and Rs 299 per hour and Rs 2999 per day for a Mahindra Scorpio. Zoom does not ask any deposit from the member, and the prices are inclusive of the fuel cost.
The car rental service has an android app and is slated to unveil its iOS app by next week. The company also plans to add luxury (BMW) and eco friendly vehicles to its offering. Zoom has a US-based vehicle technology partner, JustShareIt, which would develop state-of-the-art vehicle reservation, billing and security technology services.
“Once we will have enough vehicles to serve the core of Bangalore, we will begin offering point-to-point, one-way hire options to complement the current core offering of same location pick-up/drop off,” said Moran.