Zoomcar Holdings, Inc. reported a decline in revenue for the three months ended September 30, 2024, totaling $2.25 million, down 16% from $2.68 million in the same period of 2023. For the six months ended September 30, 2024, revenue was $4.49 million, a decrease of 15% from $5.30 million year-over-year. The company attributed this decline to a strategic shift from volume to profitability, which resulted in lower growth in Gross Booking Value (GBV) but improved net revenue per booking.
Total costs and expenses for the three months ended September 30, 2024, were $3.82 million, significantly reduced from $6.98 million in the prior year. For the six-month period, costs decreased from $17.10 million to $9.43 million. This reduction in costs was driven by various factors, including a decrease in repair and maintenance costs, personnel costs due to headcount reductions, and savings from the discontinuation of operations in Vietnam, Egypt, and Indonesia.
The net loss attributable to common stockholders for the three months ended September 30, 2024, was $(3.35 million), a substantial improvement compared to $(12.40 million) in the same period of 2023. For the six months, the net loss decreased from $(41.18 million) to $(5.88 million). The adjusted EBITDA loss also improved, reflecting broad-based cost reduction initiatives.
Zoomcar's cash position as of September 30, 2024, was critically low at $0.61 million, down from $1.50 million in March 2024, raising substantial doubt about its ability to continue as a going concern. The company reported negative cash flows from operations of $(2.50 million) for the six months ended September 30, 2024, compared to $(10.21 million) in the previous year.
Strategically, Zoomcar has undergone significant changes, including the completion of a reverse recapitalization with Innovative International Acquisition Corp. on December 28, 2023. This merger allowed Zoomcar to consolidate its operations and streamline its financial structure. However, the company has faced challenges, including the closure of operations in several countries and ongoing negotiations with lenders to restructure outstanding debts.
As of September 30, 2024, Zoomcar's accumulated deficit stood at $313.44 million, reflecting the ongoing financial difficulties and the need for additional funding to support its operations. The company is actively seeking to raise capital and has plans to raise up to $30 million through securities offerings.
About Zoomcar Holdings, Inc.
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