Car rental firm Carzonrent on Wednesday said it will invest Rs 1,200 crore in next three years to increase its car fleet by nearly five-fold to 30,000 in the country.
New Delhi: Car rental firm Carzonrent on Wednesday said it will invest Rs 1,200 crore in next three years to increase its car fleet by nearly five-fold to 30,000 in the country.
The company that currently has a fleet of 6,500 cars, also said it will increase presence to 100 cities in next three years from 17 cities at present.
"We will invest Rs 1,200 crore in next three fiscals to expand our fleet from 6,500 cars to 30,000 cars," Carzonrent Managing Director Rajiv K Vij told reporters.
On being asked how the company proposes to fund the fleet expansion, he said it would be through a mix of debt and equity.
While Rs 150 crore will be through equity, the rest will be through debt, he said.
Carzonrent that has presence in all segments of car rentals is focusing on average Indian traveler and is currently targeting 'inter city travel' as the next big business opportunity.
"We have just started our services in the inter city segment that has been dominated by local players. It is a very large market, as it generates revenues of Rs 10,000 crore per year," Vij said.
The company will, however, continue to maintain and strengthen its presence in intra city and overseas segments.
"We have also tied up with 600 car rental operators worldwide that will allow us to service our customers in 125 countries across the world," he added.
Carzonrent currently employs 6,000 drivers across the country and serviced 60 lakh travelers during the previous year.