On a quarter-on-quarter basis, Zoomcar's consolidated net loss widened 32.4% from $2.53 Mn in Q1 FY25
Revenue from services declined 16.7% YoY to $2.23 Mn in Q2 FY25
In a filing with the SEC, Zoomcar said that it expects to continue to incur a loss for at least the next 12 months and also expressed concern about its ability to continue operations
Nasdaq-listed self-driving car marketplace Zoomcar
trimmed its consolidated net loss by 72.9% to $3.35 Mn in the September quarter of the financial year 2024-25 (Q2 FY25) from $12.40 Mn in the year-ago period, mainly on the account of a sharp reduction in overall expenses.
However, net loss widened 32.4% from $2.53 Mn on a quarter-on-quarter basis.
Revenue from services declined 16.7% to $2.23 Mn in the reported quarter from $2.68 Mn in the September quarter last year. Sequentially, it rose marginally from $2.20 Mn in Q1 FY25.
The company principally earned revenue from its platform Zoomcar Host Services. Launched in March 2022, Zoomcar Host Services is a marketplace that connects owners of vehicles with users in temporary need of a vehicle on a leasehold basis.
Total income also fell 16.4% to $2.24 Mn during the quarter under review from $2.68 Mn in the same quarter last year.
In a filing with the SEC, Zoomcar said that it expects to continue to incur a loss for at least the next 12 months. Further, it said that the company’s management has expressed concern about its ability to continue operations without additional funding.
“The company’s cash position is critically deficient and critical payments to the operational and financial creditors of the company are not being made in the ordinary course of business, all of which raises substantial doubt about the company’s ability to continue as a going concern,” Zoomcar added.
The statement comes less than a week after Inc42 reported that Zoomcar has raised $9.15 Mn from unnamed institutional investors. At the time, the company said it had used $3.8 Mn from the fresh proceeds to clear outstanding debt it owed to certain investors.
Founded in 2013 by Greg Moran and David Back, Zoomcar operates a one-stop shop platform for renting self-driving cars and connects car owners with guests.
It listed on Nasdaq in December last year, following a SPAC merger with Cayman Islands-registered Innovative International Acquisition Corp.
A Closer Look At Zoomcar’s Q2 Expenses
The company managed to cut its total expenses to $3.81 Mn in the quarter ended September 30, 2024, down 45.3% from $6.97 Mn in the corresponding quarter last year.
Cost of Revenue: Zoomcar more than halved its spending on operating expenses to $1.21 Mn in the second quarter of the ongoing financial year from $2.73 Mn in the same quarter last year
Finance Costs: The company managed to cut its spending under this expense head by 74.1% to $2.16 Mn in the quarter ended September 2024 from $8.36 Mn in the year-ago period.
General And Administrative Cost: Zoomcar’s spending in this bracket declined 23.6% to $1.65 Mn during the quarter under review from $2.16 Mn in Q2 FY24.
Sales And Marketing: The Nasdaq-listed company spent $214.77K towards sales and marketing initiatives during Q2 FY25, an 81.4% decline from $1.15 Mn in the corresponding period last year.
