Zoomcar issued an aggregate of 2.13 Mn units at an effective unit price of $4.28 per unit to secure the funds from unnamed institutional investors
The company said that it has used $3.8 Mn from the fresh capital to clear outstanding indebtedness to certain institutional investors
Founded in 2013 by David Back and Greg Moran, Zoomcar operates a one-stop shop platform for renting self-driving cars and connects car owners with guests
Update | November 8, 8:22 PM
Zoomcar
announced the closing of its private placement round at $9.15 Mn. It issued an aggregate of 2.13 Mn units at an effective unit price of $4.28 per unit to secure the funds from unnamed institutional investors.
In an exchange filing, the company said that it has used $3.8 Mn from the fresh capital to clear outstanding indebtedness to certain institutional investors. It plans to use the remainder of the capital for general corporate purposes and working capital.
Original | November 7, 1:46 AM
Nasdaq-listed car rental marketplace Zoomcar plans to raise $9.15 Mn via private placement of shares to certain institutional investors.
In a statement, the company said it will use the fresh proceeds to repay nearly $3.6 Mn (INR 30.33 Cr) in outstanding debt to certain institutional creditors, as well as for general corporate purposes and working capital requirements.
The company also said that the $9.15 Mn cash proceeds will also include fees payable to the placement agent and other allied expenses.
The deal will see the startup issue 21.37 Lakh units at $4.28 (around INR 360.65) apiece. Each of these units will comprise a common share (or a pre-funded warrant), two Series A warrants (which can be converted into two shares at $4.03 apiece) and one Series B warrant, with an exercise price of $0.0001 for buying shares that will be decided on the reset date.
As per Zoomcar, the Series A and Series B warrants can be converted after the company gets shareholders’ nod. The Series A warrants will have a term of 5 years, while the Series B warrants will be exercisable until “exercised in full”.
Founded in 2013 by David Back and Greg Moran, Zoomcar operates a one-stop shop platform for renting self-driving cars. It connects car owners with guests, who can choose from a selection of cars for use at affordable prices.
Zoomcar began trading on the Nasdaq in December last year, following a SPAC merger with Cayman Islands-registered Innovative International Acquisition Corp.
Since then, the company has been bracing choppy waters. In June this year, founder Moran was terminated as the company’s CEO after a 12-year tenure. A month later, Zoomcar’s global president Adarsh Menon also quit the company just six months into the job.
On the financial front, the company trimmed its net loss by 92% to $2.53 Mn in the first quarter (Q1) of the fiscal year 2024-25 (FY25) from $28.78 Mn in the year-ago period due to a sharp reduction in its finance costs.
Meanwhile, revenue from services declined 15% to $2.20 Mn in the quarter under review from $2.61 Mn in Q1 FY24.
