Car rental startup Zoomcar sees massive growth in revenue

Posted on January 23, 2018

Zoomcar is a Bengaluru-based car-rental startup. It enables people to hire cars (without drivers) for a few hours to a week so that people can drive the cars by themselves and use it according to their convenience. Zoomcar was founded in 2013 by David Back and Greg Moran. The startup has announced today (23/01/2018) that its revenue this quarter (Q3) has grown by 40% when compared to the same quarter (Q3), last year (2017). According to The Economic Times, with this phenomenal growth in revenue and profits, the startup plans to expand its operations to other Southeast Asian and African countries by the end of this year (2018). The startup saw its first profits during December 2017.

“As we have added more fleet, we have been able to have much higher gross profit, our gross profit has gone up considerably, our fixed cost base is efficient, we don’t have a massive headcount, we don’t have significant marketing spends, only more organic growth”, said Greg Moran, co-founder and CEO of Zoomcar.

Apart from venturing into new markets, Zoomcar will also look to strengthen its presence in its existing markets, according to Greg Moran. The other vehicle rental startups to get funded last year (2017) include the bicycle rental startup, Mobycy, which raised US $500,000 (Rs. 3.25 crores) in seed round of funding from a US-based angel investor during December, last year (2017). The scooter rental startup, Vogo, raised an undisclosed amount of seed funding from a clutch of angel investors during November 2017. The bike rental startup, ONN Bikes, raised US $692,000 (Rs. 4.5 crores) in Pre Series round of funding from its existing investor, Z Nation Lab during November 2017 just to name a few. With population explosion happening in India, more and more people will want to hire cabs for daily commute in India, thereby providing a bright future for car rental companies like Zoomcar.