Zoomcar to list at Nasdaq through SPAC route

14 Oct 2022 , 10:46 AM

Zoomcar Inc., an Indian car-sharing platform, and Innovative International Acquisition Corp. have agreed to merge in order for Zoomcar to become publicly listed at Nasdaq, through Special Purpose Acquisition Company (SPAC) route. A SPAC is a company that is created solely for the purpose of raising money through an IPO. The SPAC has no commercial operations of its own. The listed SPAC then uses the money raised for acquiring another company. The acquired company then automatically gets listed because it becomes part of the listed SPAC.

With Zoomcar, customers can rent private vehicles by the hour, day, week, or month from owners who have made their vehicles available on the site. The business has operations in more than 50 cities in India, Indonesia, Vietnam, and Egypt. Its headquarters are in Bangalore.

Individuals, who requested anonymity since the transaction is private, said that the merger with the special purpose acquisition firm means that the company has a pro forma enterprise value of around $456 million.