Zoomcar To Raise $9.15 Mn From Institutional Investors

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SUMMARY

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. 





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Zoomcar To Raise $9.15 Mn From Institutional Investors


SUMMARY

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. 





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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