Ananda Trust invested $10 million in the car rental platform ZoomCar. Following the completion of the merger, a new agreement will be executed under which Ananda will subscribe to 1 million newly issued shares of the consolidated entity at a price of $10 per share.
Zoomcar will invest the funds in exchange for a convertible promissory note issued to Ananda Trust. Furthermore, the transaction will be subject to other customary closing conditions, such as registration rights. If the transaction fails, the subscription agreement will be automatically terminated.
The investment comes just a week after Zoomcar announced plans to go public on the Nasdaq through a SPAC listing. It has signed a definitive agreement to merge with a SPAC vehicle, Innovative International, in order to become a publicly traded company. The combined company will have a ‘implied pro forma enterprise value’ of $456 million as a result of the merger.