India-based used car marketplace Cars24 is to support car rental company ZoomCar with fleet expansion and associated financing.

According to a news release, the deal will help ZoomCar’s car-sharing hosts expand their fleets by sourcing certified used cars from Cars24 at a discount. Cars24’s financial arm will also provide financing to ZoomCar hosts. The partnership is expected to boost Cars24’s sales while enabling ZoomCar hosts to maximize their earnings with minimal initial investment.

Greg Moran, CEO and co-founder of ZoomCar, highlighted the deal’s potential to significantly increase the number of hosts on ZoomCar: “By offering customized financing products that lower the barrier to vehicle acquisition, this approach aligns with ZoomCar’s broader strategy to democratize vehicle access for countless micro-entrepreneurs across the country.”

ZoomCar offers rental cars in about 45 Indian cities, in addition to courier services.

Founded in 2015, Cars24 was initially a b-to-b marketplace but later shifted to a c-to-b-to-c model. Following a shift in strategy that saw it exit Indonesia and Saudi Arabia and refocus on core markets like India, Cars24 has set up new R&D facilities, made key appointments — including a VP of engineering — and added ancillary services, such as vehicle scrappage.

Its consolidated operating revenue rose by 7.8% year on year to INR55.3 billion ($664 million U.S.) in the 12 months to March 2023.

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