Auto major Mahindra & Mahindra (M&M) today said it will invest up to Rs 176 crore in car and bicycle rental firm Zoomcar India and Zoomcar Inc, its US incorporated holding parent company.

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Under the aegis of the deal, Mahindra Group would invest up to Rs 176 crore in Zoomcar India or Zoomcar Inc. Which, when converted to common stock of Zoomcar Inc on a fully diluted basis, would constitute approximately 16 per cent stake in Zoomcar Inc, the company said in a statement.

Mahindra said the company has been keen to invest in the shared mobility space as a part of its strategy to participate in sustainable mobility solutions.

"We are confident that this partnership with Zoomcar will help further our vision to transform mobility in the country, thereby creating a more connected ecosystem," M&M Managing Director Pawan Goenka said.

In November last year, Mahindra and Zoomcar announced a partnership to introduce electric vehicles in the shared mobility space.

Zoomcar recently launched Mahindra e20Plus electric vehicles (EV) across Mysore, Bangalore, and Hyderabad.

Going forward it expects to add over 500 Mahindra EVs across more than 20 cities pan-India, in the first half of 2018," the company added.

Zoom Car India operates a fleet of over 2,500 vehicles in 27 cities across India. For the fiscal year 2017 it had recorded a revenue of Rs 121 crore.