Rumour: Zoomcar & Drivezy might merge into one company

According to a media report, representatives of self-drive car rental company Zoomcar and bike rental firm Drivezy are in talks for a merger.

The reports suggests that if the talks progress, the two companies could be merged into a single entity with both parties having an equal share. Top investors of both firms are likely to hold stake in the new company. However, the deal won't go through until lenders of both companies approve its terms.

Zoomcar is reportedly seeking a valuation of US$ 350-500 million and is backed by Mahindra. On the other hand, Drivezy is seeking a valuation of US$ 400 million. Both companies have raised money through debt funding. While Zoomcar has raised US$ 100 million, Drivezy had raised US$ 5 million via an initial coin offering (ICO) in 2018. The latter has also secured an investment of US$ 40 million till date.

Source: LiveMint