Zoomcar's surprise SPAC listing hides its plethora of issues

The car rental startup has somehow managed to go public and says it will turn a profit this year. That seems to be far from reality though.

Zoomcar Inc. is now a public company. Last month, the car rental startup was acquired by a special purpose acquisition company, or SPAC, called Innovative International Acquisition Corp. 

Zoomcar, founded a decade ago in Bengaluru, has been talking about the SPAC deal and listing in the US since late 2022. Its initial target of going public in the first half of 2023 saw delays, but to some surprise, the merger came through in the last days of December, with the company now trading on the Nasdaq as Zoomcar Holdings Inc.

But the listing is far from a successful ending for …

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Anuj Suvarna

Anuj covered all things startups and venture capital at The Morning Context. Previously, he worked at VCCircle, where he covered healthcare and private equity. Anuj studied mass communication at the Manipal Institute of Communication and before journalism, he operated a bar in Udupi.

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anuj@mailtmc.com

Bengaluru