Zoomcar forecasts decline in FY net loss on lower operating costs

Zoomcar Holdings is expecting a decline in its net loss for the year ended March 31, 2024, amid steps taken to reduce operating expenses.

According to a US Securities and Exchange filing dated July 2, the NASDAQ-listed company sees FY24 net loss to be about $34 million compared to $62 million in 2023. 

The company said that, from January last year, it had implemented several cost-saving measures, including reduced personnel costs, closure of some of its subsidiaries’ operations, workforce optimisation, and cost rationalisation for its India-based call centres. 

The Bengaluru-headquartered company also expects its total revenue in FY24 to rise to about $9.8 million, from $8.6 million in FY23. 

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In another filing, Zoomcar said the company’s president, Adharsh Menon, had resigned from his position, effective June 30, after serving for six months. Menon was previously the senior vice president and head of Flipkart’s new businesses. 

Founded in 2013 by David Back and Greg Moran, Zoomcar merged with a special purpose acquisition company, Innovative International Acquisition Corporation, in October 2022, to form Zoomcar Holdings. 

In June this year, the company terminated Greg Moran as its CEO and appointed its chief operating officer, Hiroshi Nishijima, as the interim CEO. 

In the same month, Zoomcar said its current cash and cash equivalents will allow the company to continue its operations through November 2024, assuming it does not use the cash to pay down existing debts.