In a significant financial update, Zoomcar’s Indian entity witnessed a substantial increase in its net loss for the financial year ending March 31, 2023. Despite its recent listing on Nasdaq following a special purpose acquisition company (SPAC) merger, Zoomcar India reported a net loss of INR 237 Crore in FY23, marking a significant surge of 221% from the previous fiscal year’s loss of INR 74 Crore.
Founded in 2013 by Greg Moran and David Back, Zoomcar operates as a marketplace facilitating the rental of self-driving cars. The platform connects hosts offering vehicles for rent with guests who can choose from a diverse selection of cars at affordable prices.
Financial Performance Overview:
- Net Loss: INR 237 Crore in FY23, a 221% increase from INR 74 Crore in FY22.
- Operating Revenue: Declined by 27% to INR 69.1 Crore in FY23 from INR 94.9 Crore in the previous fiscal year.
- Total Revenue: Dropped 27% to INR 69.1 Crore in FY23, including other income.
Expenditure Breakdown:
- Employee Benefit Expenses: INR 127.4 Crore, representing 39.5% of total expenses, with a 7% increase from INR 119 Crore in FY22.
- Advertising Expenses: Declined by 37% to INR 39.5 Crore in FY23 from INR 62.3 Crore in FY22.
- Miscellaneous Expenditure: INR 78.4 Crore, without a detailed breakdown.
Business Strategy and Market Presence: In an interview with CNBC-TV18, Zoomcar’s co-founder Greg Moran highlighted that India accounted for 90% of the company’s business. Besides its significant presence in India, Zoomcar operates in Indonesia and Egypt.
Post-Nasdaq Listing: Zoomcar commenced trading on Nasdaq on December 29 after completing a business combination with Innovative International Acquisition Corp. Since its listing, Zoomcar’s shares have shown a 38% gain, currently trading at $5.11.
Leadership Addition: Earlier this month, the company announced the appointment of former Flipkart and Hindustan Unilever executive Adarsh Menon as its president.
