Car rental company, Carzonrent India, which operates the Easy Cabs and Carzonrent Limo services, plans to own a fleet of 30,000 cars across its brands in the next five years. To achieve this, the company plans to go for an Initial Public Offering (IPO) in the next two years.
“We will be raising capital to expand our business across cities. We will require a capital of Rs 1,800 crore to increase our fleet to 30,000 cars from 6,500 at present, including radio taxis which constitute a significant portion of our fleet. So, an IPO is the best way. Since we have also raised funds from private equity players, it is the best way to give an exit route,” Rajiv K Vij, Managing Director, Carzonrent, said.
According to a Financial Chronicle report by Rupesh Subhash Janve, three private equity players — SIDBI Ventures, Westbridge Capital and BTS India PE Fund — have invested over Rs 100 crore in the last five years in the company. “The three PE players hold a 35 per cent stake in Carzonrent, while the remaining is held by me,” Vij said.