Car-rental platform Zoomcar is seeking a public listing via a merger with special purpose acquisition company Innovative International Acquisition Corp.
The transaction values the combined company, which will be renamed Zoomcar Holdings, at $456 million.
In a statement, India-based Zoomcar, which was founded in 2014, says it has more than three million active users and 25,000 vehicles registered on its car-sharing marketplace.
Greg Moran, co-founder and CEO of the company, says: “Zoomcar aims to fundamentally transform the urban mobility landscape across emerging markets through the introduction of a highly scalable marketplace focused car sharing platform.”
He adds that the company is targeting Southeast Asia, Latin America, the Middle East and North Africa and Sub-Saharan Africa for future expansion.
Moran says: “We see a vast addressable market, totaling approximately $90 billion annually by 2025, due to current average private car ownership levels of less than 10% across, combined with an under-utilized vehicle base of nearly 200 million cars in our core markets.”
The company is currently present in 50 cities across four countries.
Mohan Ananda, chairman and CEO of Innovative, says: “With our deep experience in operations and technology, we see Zoomcar’s advanced platform addressing and solving the industry’s most pressing needs in today’s challenging urban and emerging markets.”
The directors of both Zoomcar and Innovative have given the go-ahead for the business combination, which is expected to be completed in the first half of 2023.
Zoomcar raised $40 million in early 2018 and $92 million just over a year ago.