India’s largest 4-wheeled rental startup is expanding into Vietnam’s market
Greg Maron and David Back co-founded Zoomcar in 2013. The two American co-founders wanted to meet the needs of young people who didn’t want or couldn’t own a car. The reason is often the complicated maintenance costs and procedures. Zoomcar makes money through car rental and sharing for days and weeks. This startup also offers rents for a whole month with simple procedures. Tenants only need to deposit a fee to start their trip. Zoomcar links with car manufacturers like Tata, Mahindra, Ford for term rental. Mahindra’s REVA E20 is the first electric vehicle rental on the platform.
Zoomcar also rents cars from other companies to meet domestic requirements. This startup is one of the leading companies in the Indian car sharing market. The company leases more than 7,000 cars in 5 countries. Zoomcar has expanded to the Philippines, Egypt, Indonesia, and Vietnam. This startup is also preparing to IPO in the US through SPAC with Sequoia Capital. Zoomcar confidently leads the car rental segment in India. The company accounts for 75% of the car rental market in India. In the next 2-3 years, Zoomcar will also invest $100 million in Southeast Asia.
A Chinese car manufacturer is going to IPO
Chinese carmaker Geely Holding is conducting discussions with banks. These discussions are about the next step to listing the Volvo Cars subsidiary. This will be one of Europe’s biggest IPOs in 2021. Volvo Cars is aiming for a valuation of around $20 billion from this deal in Stockholm. Goldman Sachs and SEB are leading advisors on this deal. BNP Paribas, Carnegie, and HSBC also participated.
Geely acquired Volvo from Ford at the time when the American automaker was in crisis. Geely has been planning this IPO since 2018 with an expected value of up to $30 billion. Many European carmakers have turned to electric vehicles. Volvo Cars aims to switch to producing all-electric cars by 2030. It currently holds a 49.5% stake in electric carmaker Polestar. A series of startups have exploited many opportunities from the green car industry. All-electric car company Rivian launched its first pickup model. The company is looking for a valuation of $80 billion when it undergoes IPO in late 2021.
Sources of information include Reuters and Techcrunch.