Self-drive car rental company Zoomcar is in talks with rival Drivezy for an equal merger, Mint reported.
Talks may not end in a deal unless lenders to both the companies approve the terms of the deal, the report said citing three people aware of the development.
Top investors in both startups are likely to hold stakes in the merged entity, said the sources.
However, as per one of the source, "Zoomcar might look at a share-swap deal, which will allow the company to pay existing shareholders using equity shares, rather than paying the sum entirely in cash."
Financial details of the transaction could not be ascertained, said the report.
Zoomcar was started in 2013 by American entrepreneurs Greg Moran and David Back in Bengaluru while Drivezy, a car and bike rental startup was launched as JustRide in August 2015. Zoomcar is currently backed by Mahindra and Mahindra (M&M).
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM
Odisha: Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 10:22 AM
Lok Sabha Election 2024: What rural Delhi wants
May 16, 2024 10:10 PM
Over 50 onion farmers detained in Nashik ahead of PM Modi's visit
May 16, 2024 11:14 AM