Business

Zoomcar, the largest car-sharing platform focused on emerging markets in the world

We believe Zoomcar's cutting-edge platform will meet and resolve the industry's most urgent needs

Since its founding in 2013, Zoomcar has led the way in developing markets for car sharing.

The Zoomcar platform connects host vehicle owners with visitors who select from a range of otherwise idle automobiles to use for personal, business, and travel requirements through its asset-light marketplace-focused business model.

With operations in India, Indonesia, Vietnam, and Egypt, Zoomcar is revolutionizing urban mobility through the introduction of cost-effective, environmentally friendly, and practical transportation options.

With operations in more than 50 locations around the world, Zoomcar intends to keep developing shrewd, practical, and environmentally friendly transportation options for people in emerging markets.

Given that ownership rates in Zoomcar’s core regions average less than 10%, the company’s primary focus is on the transportation needs of emerging market countries, which is expected to represent an addressable market of $90 billion by 2025.

Since its beginning, Zoomcar has continued to invest in key technologies like IoT and machine learning to offer a seamless, frictionless user experience for guests and hosts. This is the company’s main competitive advantage.

Zoomcar anticipates using the money received from the proposed transaction (the “Proposed Transaction”) with Innovative to quicken the development of new technologies and expand into new areas, all the while maintaining its investment in market expansion.

Zoomcar’s implied pro forma enterprise value, as represented by the proposed transaction, is $456 million.

After shareholder redemptions and transaction finance, cash held by Innovative are anticipated to make up Zoomcar’s proceeds from the proposed transaction.

Innovative International Acquisition Corp. (“Innovative”) (NASDAQ: IOAC), a publicly traded special purpose acquisition company, and Zoomcar, Inc. (“Zoomcar”), the world’s largest emerging market focused car sharing platform, announced today that they have signed a binding merger agreement (the “Merger Agreement”) that will turn Zoomcar into a publicly traded company.

The indicated pro forma enterprise value of the merged business (the “Combined Company”) according to the deal is $456 million. The Combined Company will become Zoomcar Holdings, Inc. following the close. It plans to list its common stock on Nasdaq.
Within just a year its car-sharing network, Zoomcar has amassed over 3 million active user. Over 25,000 vehicles registered for usage on its worldwide car-sharing marketplace.
As it sources vehicle owners to serve as hosts on its car-sharing marketplace. Zoomcar benefits from extraordinarily favourable market dynamics with private car utilisation rates of 1-2 hours per day across its main markets.
Zoomcar benefits from the vast range of use cases for private car usage across its core regions on the guest side of the business. Recovery from the COVID-19 epidemic presents a substantial possibility for transient vehicle use as well.

“Aims to fundamentally disrupt the urban mobility scene throughout emerging nations through the introduction of a highly scalable marketplace centred car sharing platform.”

Zoomcar Co-Founder and CEO Greg Moran
Since its debut, Zoomcar has expanded, and thanks to a quick rate of adoption. It now has a presence in four nations and more than 50 cities.
Due to its first-mover advantage in several regions, Zoomcar has built a solid brand recognition. That serves as the foundation of its product-driven, organic growth approach for expanding its business.
With less than 10% average vehicle ownership across its key regions, Zoomcar’s shared mobility strategy. Has proven to be a perfect fit for emerging economies.
This unmet demand comes from a burgeoning middle class that prioritises cost and convenience. Additionally, young populations and fast expanding, congested cities reinforce the ecosystem of Zoomcar’s car-sharing marketplace and support continued adoption.
Scalable automobile sharing is made possible by Zoomcar’s innovative technological platform. Eligible users may post their personal, private, or non-transport vehicles on the site and reserve them for use by themselves.
It’s simple to host a vehicle on Zoomcar. Vehicles that are listed on the platform have a unique safety monitoring hardware device that provides 100% keyless entry. As part of Zoomcar’s in-house IoT technology stack.
When bookings begin to come in after onboarding, the car is prepared to start earning money for the host. When it is convenient, hosts can choose to rent out their cars. They are credited with money once a booking is complete.

Management Comments

“Zoomcar’s car-sharing marketplace is positioned to cut across emerging economies, and we anticipate to target future expansion prospects in markets such as SE Asia, Latin America, MENA, and Sub-Saharan Africa, Due to current average private car ownership levels of less than 10% worldwide and an underutilised vehicle base of about 200 million cars in our main regions, we envisage a massive addressable market, totaling around $90 billion annually by 2025”.

stated Greg Moran, Founder & CEO of Zoomcar.


“We believe Zoomcar’s cutting-edge platform will meet and resolve the industry’s most urgent needs in today’s demanding urban and emerging regions because of our extensive experience in operations and technology. Because of its past performance and current level of success, Zoomcar stands out from its rivals and is well-positioned for faster growth at a time when demand for vehicle usage is rising and car ownership is still very low”.

Dr. Mohan Ananda, Chairman & CEO of Innovative

Key Transaction Terms

A Zoomcar subsidiary and Innovative are merged as part of the proposed transaction between the two parties, and Innovative concurrently issues securities to Zoomcar security holders.
The publicly traded Combined Company is anticipated to change its name to “Zoomcar Holdings, Inc.” after the merger is completed. Zoomcar is valued at an assumed pro forma enterprise value of about $456 million in the proposed transaction.
Shares of the Combined Company common stock, valued at $10.00 per share, as well as the assumption of the outstanding Zoomcar securities will be included in the transaction consideration.
Additional earnout shares may be distributed to Zoomcar stockholders after closing, contingent upon the achievement of specific trading price-based targets or a change in control of the Combined Company.
Currently, there are about $235 million in the Trust Account that Innovative set up at the time of its IPO.
After Innovative shareholders’ redemptions have been satisfied, the Trust Account’s proceeds are anticipated to give Zoomcar money at close so it can carry out its business plan and for general working capital needs.
A majority of the outstanding shares of the combined company are anticipated to be held by zoomcar investors after the closure, and zoomcar will choose the majority of the proposed directors for the combined company board.
The proposed business combination has received unanimous board approval from Innovative and Zoomcar.
It is anticipated to close in the first half of 2023, subject to, among other things, shareholder approval from Innovative and Zoomcar as well as satisfaction (or waiver, as appropriate) of the conditions outlined in the Merger Agreement, including regulatory approvals and other customary closing conditions, such as the filing of a registration statement (the “Registration Statement”), among others.
A Current Report on Form 8-K concerning the Proposed Transaction, which Innovative will file with the SEC and make available at www.sec.gov, will contain more details about the Proposed Transaction, including a copy of the Merger Agreement.
The Registration Statement, which Innovative will submit to the SEC, will go into further detail about the Proposed Transaction.

Advisors

The Special Committee of the Board of Directors of Innovative (the “Special Committee”) is being advised financially by Lincoln International.

Investor Webcast

Zoomcar and Innovative plan to speak on a conference call together to go over the potential corporate merger. Innovative will provide the SEC with a transcript of the conference call, which will be posted on the SEC’s website at www.sec.gov.
Furthermore, Innovative plans to submit a registration statement on Form S-4 to the SEC, which will also include a proxy statement/prospectus of Innovative and other papers pertaining to the proposed transaction.
This article was shared with Prittle Prattle News as a Press Release.
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