Car-renting platform Zoomcar to merge with Innovative International: Report

Zoomcar Inc., an Indian car-sharing platform, and Innovative International Acquisition Corp. have agreed to merge in order for Zoomcar to become publicly listed, persons close to the matter told Mint. As per the individuals, who requested anonymity since the transaction is private, the merger with the special purpose acquisition firm means that the company has a pro forma enterprise value of around $456 million. The merged company, which will trade as Zoomcar Holdings Inc., is anticipated to list its shares on the Nasdaq. However, spokespersons of both Innovative International and Zoomcar declined to comment.

In a Series E round headed by SternAegis Ventures last November, Zoomcar raised $92 million, bringing its total funding to $332 million, as per data provider PitchBook. While Sequoia Capital India is a shareholder and board member, Waze co-founder Uri Levine is the Chairman of the board. In its initial public offering last year, Innovative International, managed by Chairman and Chief Executive Officer Mohan Ananda, earned $230 million, including so-called greenshoe shares, based on a statement issued at the time.

Greg Moran, who is currently the company’s chief executive officer, and David Back founded Zoomcar in 2013. Back is no longer working with Zoomcar. The company administers a private automobile marketplace where owners list their vehicles for rent and consumers can rent them by the hour, day, week, or month. The company has operations in more than 50 cities in India, Indonesia, Vietnam, and Egypt. Its headquarters are in Bangalore.

Over 25,000 automobiles have been registered by their owners on the network, which has more than 3 million active users. The business keeps 40 percent of each transaction even though none of the cars rented through the platform is owned by it. Zoomcar is a member of a small but growing group of companies that have expanded the ride-sharing model to the car itself, including Turo Inc. of San Francisco.

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