Mahindra & Mahindra zooms into car rental space
Mahindra & Mahindra Limited announced plans to invest in Zoomcar India, a Bengaluru-based self-drive mobility company.
Zoomcar India Private Limited is 100 per cent subsidiary of Zoomcar Incorporated, USA. The company provides cars on rent in 27 cities across India with a fleet of 2,500 cars. The service is popular among frequent intercity travellers. The company recorded a revenue of Rs. 121 crore for the year FY17.
The acquisition is part of M&M's broader strategy to adapt to the future of mobility, wherein shared multi-modal urban mobility, public transport and electric vehicles are expected to rise.
According to the agreement signed between the two parties, Mahindra Overseas Investment Company (Mauritius) Limited, a wholly-owned subsidiary of the company will acquire share from the existing shareholders of Zoomcar Inc, subject to approval from RBI. The initial investment will be through CCPS of Zoomcar India and would cost approximately Rs. 176 crore.
Meanwhile, at 11:10 hours, the stock of M&M was quoting Rs. 746.35 per share, down 0.56 per cent and BSE Sensex was at 34,281.85, down marginally by 0.05 per cent on Friday.