Carzonrent to invest Rs 150 cr to expand fleet

The company currently got 6,500 cars in the offering and is planning to increase it to 30,000 cars in next three years

PE/VC funds-backed Carzonrent (I) Pvt Ltd is planning to invest around Rs 150 crore over the next three years to expand its fleet.

Speaking to reporters after launching inter-city, intra-city and self-drive services in Chennai today, Rajiv Vij, MD & CEO, Carzonrent, said that the company got 6,500 cars in the offering and is planning to increase it to 30,000 cars in the next three years.

"This industry will look different in the coming years, similar to what in developed markets. Today approximately the industry got 400,000 cars."

He noted some of the global brands including Hertz, Avis and Budget came to India but couldn't succeed. "This was mainly due to lack of industry knowledge in India, over head cost and pricing pattern".

Currently the industry is estimated to be worth around Rs 15,000 crore and growing at around 12-15%.

In the last 12 years the company grew by 43% CAG and commands a market share of 18%. Last year company clocked Rs 250 crore and six million individuals were serviced.

The growth of the company has attracted three investors -- SIDBI, Sequoia and West Bridge/BTS Advisors. Carzonrent raised around Rs 100 crore from these funds.

Commenting about funding for the proposed investment, Vij said that "we have enough money and won't be raising any equity".