Car rental company Carzonrent India Pvt Ltd, which operates under the name Easy Cabs, has raised Rs 36 crore from private equity fund BTS India. This is part of the Rs 100 crore being raised by the company in its third round of funding.
In 2005, Carzonrent India first received Rs 6 crore from SIDBI Ventures in return for a 10% stake. In 2006, Sequoia Capital invested $6 million into Carzonrent for a little less than 20% stake, which has fallen further this week. BTS India's portfolio comprises of Caravel Logistics Pvt Ltd., Mantri Metallics Private Ltd., Microqual Techno Private Ltd., Parabolic Drugs Ltd., QAI India Ltd., Reliable Autotech Private Ltd. and Sai Sudhir Infrastructures Ltd.
The funding will be used to lay the base for expansion into neighbouring countries over the next few years. "We see the industry now is ready to expand. There is good opportunity and demand. We will be expanding our fleet size as well as opting for geographical expansion. In the next 2 years, we will launch in neighbouring countries," said Rajiv K. Vij, CEO, Carzonrent (India) Pvt. Ltd., speaking to VCCircle.
Acquisitions could be a part of his plans, he added. Carzonrent India registers a monthly revenue of Rs 23 crore with profit margins at around 10%, said Vij.
The 10-year-old firm offers self drive, fleet management, operating lease and low cost taxi services. It services 450 large corporates, offering both car rental and lease with a fleet of more than 4,000 cars. It also offers a limousine service, which is picking up well, according to Vij.
Another major player in the industry Meru Cabs, owned by V-link Travel Solutions Pvt. Ltd. Meru is majority-owned by PE major India Value Fund and is expected to take its fleet size to 7,000 by the year-end.