Within few days after Indian cab-hailing firm Ola has announced to enter self-drive car rental market with fleet of 10,000 cars, Bengaluru-based car rental startup Zoomcar is said to be raising around $500 million in a fresh funding round led by automaker Mahindra and Mahindra Ltd, reported Livemint citing sources aware of the development.

The upcoming funding, which is expected to close in current quarter, will be a mix of debt and equity financing and will shoot up the valuation of Zoomcar to over US$1 billion making it an another unicorn startup based out of India.

Mahindra, who is already an existing investor in Zoomcar, is expected to pump in $300-400 million in Zoomcar, said the report. Zoomcar’s existing investors from the US are also likely participate in the current round.

It is said that Zoomcar will use the large portion of the upcoming funding to purchase more vehicles.’

Last year in February, Zoomcar had raised $40 million in a Series C funding round led by Mahindra & Mahindra along with participation from variety of investors. This was followed by a $3.6 million fundraise in debt fund from Silicon Valley-based Trifecta Venture Debt Fund, in August last year.

Founded in 2013 by American duo David Back and Greg Moran, Zoomcar has raised a total of $103.8 million in funding over 10 rounds from investors including Sequoia Capital, NGP Capital and Ford Motor Company, among others.

In April last year, Zoomcar has had launched Mahindra e20Plus electric vehicles across Mysore, Bangalore, and Hyderabad. Thereafter, it was also reported to have added another 500+ Mahindra Electric Vehicles across more than 20 cities pan-India, in the first half of 2018.

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