Zoomcar Q1: Net Loss Shrinks 92% To $2.5 Mn, Revenue Slips 15%

Nasdaq-listed self-driving car marketplace Zoomcar managed to significantly cut its loss in the first quarter of the fiscal year 2024-25 (Q1 FY25) due to a sharp reduction in its finance costs. The startup’s net loss declined 92% to $2.53 Mn during the quarter under review from $28.78 Mn in the year-ago period.

However, it also saw a decline in operating revenue. Revenue from services fell 15% to $2.20 Mn from $2.61 Mn in Q1 FY24. 

Despite the decrease in revenue, the startup said in a statement that it saw higher traction for its services during the quarter. Zoomcar’s number of bookings went up 9% year-on-year to 1.12 Lakh in Q1 FY25. It said that booking grew despite lower expenditure on performance marketing and host incentivisation.

Total costs and expenses declined 44.5% to $5.61 Mn from $10.11 Mn in the year-ago quarter on the back of reduction in sales and marketing and cost of revenue. Cost of revenue fell 58% to $1.51 Mn from $3.61 Mn in the year-ago quarter, while sales and marketing expenses fell 70% to $802.5K in Q1 FY25 from $2.70 Mn in the corresponding quarter last year.

Besides, the startup also saw a sharp fall in its finance costs in the quarter. Finance costs plunged over 97% to $551K from $21.52 Mn in the year-ago quarter. 

Zoomcar said expenses declined as a result of “broad-based cost optimisation initiatives driven by technology and product”. It said it tightened the guest verification process in the quarter and led to a reduction in late returns and accidents.

The startup said that its adjusted EBITDA loss also shrunk to $3.3 Mn during the quarter from $6.8 Mn in Q1 FY24. 

“Our first fiscal quarter results reflect a robust performance in our ongoing efficiency efforts. We achieved record non-GAAP gross profit and contribution profit, while also laying the groundwork for substantial revenue growth in the coming quarters,” Zoomcar’s recently appointed CEO Hiroshi Nishijima said in the statement. 

Earlier this month, Zoomcar rolled out a unified app to facilitate better car sharing experience for both guests and hosts. 

The improvement in its financials come at a time when its top deck has seen a number of changes in recent months. Zoomcar cofounder Greg Moran was terminated from his CEO position on June 27. Its ex-COO Nishijima then took up Moran’s role.

Besides, Zoomcar’s global president Adarsh Menon also quit in July. 

Founded by Moran and David Back in 2013, Zoomcar is a marketplace for renting self-driving cars. The startup connects hosts with guests, who choose from a selection of cars for use at affordable prices. 

It listed on Nasdaq in December 2023, following a SPAC merger with Cayman Islands-registered Innovative International Acquisition Corp.