Zoomcar, which listed on Nasdaq last month following the completion of a special purpose acquisition company (SPAC) merger, saw its India entity’s net loss surge over 3.2X in the financial year ended March 31, 2023.
Zoomcar India posted a net loss of INR 237 Cr in the financial year 2022-23 (FY23), a jump of 221% from INR 74 Cr in the previous fiscal year.
Founded by Greg Moran and David Back in 2013, Zoomcar is a marketplace for renting self-driving cars. The startup connects hosts with guests, who choose from a selection of cars for use at affordable prices.
Zoomcar India’s operating revenue declined 27% to INR 69.1 Cr in FY23 from INR 94.9 Cr in the previous fiscal year. The startup generates revenue from car rentals and subscriptions, among others.
Including other income, Zoomcar’s total revenue dropped 27% to INR 69.1 Cr during the year under review from INR 94.9 Cr in FY22.
In a recent interview with CNBC-TV18, Moran said that India accounted for 90% of Zoomcar’s business. The company also has a presence in Indonesia and Egypt.
Where Did Zoomcar Spend?
Zoomcar India saw its expenditure decline 10% to INR 321.8 Cr in FY23 from INR 359.1 Cr in the previous fiscal year.
Employee Benefit Expenses: Employee costs accounted for the largest chunk of the startup’s total expenditure. At INR 127.4 Cr, employee expenditure accounted for 39.5% of Zoomcar’s total expenses. It rose 7% from INR 119 Cr in FY22.
Advertising Expenses: The startup’s advertising expenditure declined 37% to INR 39.5 Cr during the year under review from INR 62.3 Cr in FY22.
It also spent INR 78.4 Cr under miscellaneous expenditure. However, it didn’t provide the breakdown for this expense.
Zoomcar started trading on Nasdaq on December 29 after a business combination with Cayman Island-registered Innovative International Acquisition Corp. The company’s shares have gained 38% since its listing and were last trading at $5.11.
Earlier this month, Zoomcar roped in former Flipkart and Hindustan Unilever executive Adarsh Menon as its president.
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