Zoomcar announces debt restructuring with focus on financial stability
Zoomcar plans to finish its restructuring exercise by November 2024 to decrease cash outflow and invest in strategic initiatives for long-term sustainability and stakeholder value.
Self-drive car sharing platform is undergoing debt restructuring to reduce its outstanding debt of approximately $31 million as of June 30, 2024.
The company has negotiated with lenders and vendors to reduce 75% of their immediately payable debt, either allowing a deferred payment schedule of up to 24 months or reducing payouts by up to half in a short term.
It plans to finish its exercise by November 2024 to decrease cash outflow and invest in strategic initiatives for long-term sustainability and value for all stakeholders.
"Zoomcar’s business fundamentals are strong, and this debt restructuring is an important step towards positioning the company for long-term success. We are very grateful to all our partners who have stood by us and supported us in our debt restructuring endeavor showcasing their commitment towards our growth," said Hiroshi Nishijima, CEO of Zoomcar.
"Our focus remains on sustainable growth and fulfilling our financial obligations, which is key to maintaining trust with our partners and customers," he added.
Zoomcar, founded in 2013, offers car rental services in Bengaluru. It offers hourly, daily, weekly, or monthly rentals. The company has received investments from Peak XV, Ford Smart Mobility, Nexus Venture Partners, and Mahindra & Mahindra.
Recently, It launched a new app with over 100 new features for guests and hosts. The app offers faster booking experiences, top-rated cars, and guest favourites. Hosts can now control their listings, have flexible booking options, and automatically extend listings. New hosts can also use GPS trackers and keyless entry devices.
Edited by Jyoti Narayan