Car rental firm Carzonrent is looking to invest up to Rs 400 crore over the next five years to beef up business verticals, including self drive car service ‘Myles’, besides technology upgradation as it eyes Rs 5,000-crore revenue by 2021. The New Delhi-based company offers chauffeured vehicles on rental basis to corporates, institutions and SMEs, besides self drive vehicles.
“It seems to be quite an aggressive target but with the kind of work we have done in the past 15 years to consolidate our operations, technology and network, we are quite confident of achieving a revenue target of Rs 5,000 crore,” Carzonrent MD and CEO Rajiv Vij told PTI.
The industry as a whole has reached an interesting and inflection point, ready to expand rapidly, he added. The company’s current turnover is around Rs 350 crore. “We are adding new clients everyday. We have built a reputation over a period of time, enhanced technology, added new partners and all these things give us confidence to achieve our set targets,” Vij said.
When asked about investments, he said that in order to expand fleet and enter new cities, the company will invest in the range of Rs 300-400 crore over the next five years. “Some of it will come from internal accruals. Besides, we may also look at some stage to raise capital by either public listing or raising from the equity partners,” Vij said.
Carzonrent has already invested around $9 million in the last two-and-a-half years. The company offers its car rental services to various corporates, including Emirates, Accenture, Intel, TCS and Amazon, across 21 cities. Carzonrent currently enjoys a market share of around 22 per cent in the organised car rental market and is growing at 30 per cent year-on-year, Vij said.
Its self drive service Myles, which started operations with just 14 vehicles two years back, now has a fleet of 1,200 vehicles. “It (Myles) is going to be very huge business for us. By the end of the year, we aim to have a fleet of around 5,000 cars,” the CEO said. He added that the company has established Research and Technology Development Lab in Delhi and Bangalore, besides a National Command Centre (NCC).
The company is adding manpower in these centres in order to support future growth, he said. “The current strength of NCC will go up from 200 to 600 while employee strength in Bangalore will go up to 200 from the current 50,” he added.