ECOS India Mobility Reached 4X Revenue In Five Years: CMD Rajesh Loomba Ahead Of IPO

ECOS (India) Mobility & Hospitality Limited announced the price band for its upcoming initial public offer (IPO) on Friday. ECOS (India) Mobility & Hospitality IPO will open for subscription on Aug. 28. The price band for the mainboard issue has been set at Rs 318–334 per share.

The Rs 601.2 crore mainboard public offer comprises entirely an offer-for-sale (OFS) of 1.8 crore shares.

Ahead of the launch of the IPO, commenting on the company’s journey to go public, Chairman and Managing Director, ECOS (India) Mobility & Hospitality, Rajesh Loomba, told NDTV Profit that it took 19 years for the chauffeur-driven mobility services provider to reach revenue of Rs 100 crore. He added that after touching the Rs 100 crore milestone in 2015, the company managed to increase its turnover four times to Rs 400 crore by 2020.

“This particular company was formed in 1996; unfortunately, our father passed away in 2002, which is when my brother Aditya joined the business. Talking about scale, it took us almost 19 years to reach Rs 100 crore. We touched a revenue of Rs 100 crore in 2015. Having branched out pan-India after that we put in systems of automated processes and things like that and we were able to quadruple our turnover by 2020, almost four times to Rs 400 crore,” Loomba said.

The company, which operates under the brand ‘ECO Mobility’, is one of the largest chauffeur-driven mobility service providers, mainly catering to corporates.

Loomba added that ECO Mobility’s business was also impacted by the onslaught of the Covid 19 pandemic in 2020; however, the company managed to bounce back and surpass its pre-Covid revenue by generating Rs 422 crore in FY23. The company touched an operating revenue of Rs 554 crore in FY24.

Loomba said that the scale of the business has expanded over the years to 12,500 cars, which provide services across 109 cities in India. He added that the company is focused on two primary segments of the business: employee transportation and chauffeur-driven car rental services.

These two segments are also the prime demand generators and prime revenue generators in the corporate segment, according to Loomba.

“The demand is for better quality of services, more consistent quality of services, and more predictable quality of services and we have been able to create this kind of scale with quality,” Loomba added.

Loomba said that the company’s business was started by his father in 1973. He added that the name of the company’s name, ‘ECO Mobility', is a truncated version of his father’s army designation of ‘‘Emergency Commissioned Officer’.

“The seeds of this business were sown by our late father way back in 1973; he was an ex-army officer who had taken part in the 1965 Pakistan operations. He had joined something called the Emergency Commission. After coming out from the Army, he started by driving a borrowed car himself for almost two years. He called the company ECO because it stood for ‘Emergency Commissioned Officer’,” Loomba said.