Zoomcar Holdings, Inc.

What they do

Zoomcar operates an online platform connecting car owners (Hosts) with temporary vehicle users (Guests) in emerging markets, primarily India. It generates revenue from a portion of booking fees, platform fees, and trip protection/value-added fees. Hosts receive approximately 60% of booking fees, with Zoomcar retaining the rest.

Revenue drivers

• Guest booking fees — Core revenue stream; Zoomcar receives a portion of the upfront booking fee charged to Guests, with Hosts retaining ~60%.
• Platform and value-added fees — Includes Guest and Host platform fees and trip protection fees; contributes to gross booking value.
• Other trip-related fees — Charges like late fees, trip extension fees, and fuel-related charges (fuel is paid by Guests) provide incremental revenue.

Recent performance

For Q3 FY25-26 (ended December 31, 2025), Gross Booking Value was $6.60 million, with repeat users making up 58% of bookings. Contribution profit reached a record $1.38 million (58% margin), the ninth consecutive quarter of positive contribution profit, with contribution profit per booking up 14% YoY to $14.10. Adjusted EBITDA loss improved 74% YoY to $(0.83) million, and net loss attributable to shareholders narrowed 91% YoY to $(0.72) million. For FY26, management expects net loss to decline ~70% YoY and Adjusted EBITDA losses to fall ~54% while maintaining stable topline. Annual revenue has been roughly flat at ~$9 million for FY2025 and FY2026, with a net loss of $-14.6 million in FY2026.

Strategy

Management is focused on executing its asset-light, peer-to-peer car-sharing model in India, expanding host and guest base. They are investing in AI-powered risk engine 'Fraud Shield' and Google Cloud AI to improve onboarding and safety. They are pursuing a Bridge Financing of up to $5 million (with potential $5 million overallotment) to strengthen the balance sheet and fund path to breakeven. They are also executing a Tender Offer to exchange warrants for common stock to simplify the capital structure and consolidate equity.

Risks

• Going concern and liquidity — The company has a history of losses, negative cash flow, and limited cash resources requiring imminent capital raise; substantial doubt about ability to continue as a going concern.
• Delisting and OTC trading — Common stock delisted from Nasdaq in May 2025 and now trades on OTC Markets; they have applied to move to OTCQX/OTCQB but maintainability is uncertain.
• Capital structure complexity — Outstanding warrants and preferred stock could dilute existing shareholders; Tender Offer and bridge financing involve structural risks.
• Operational concentration in India — Business heavily depends on India; any regulatory, economic, or competition issues in this market could materially affect results.

Outlook

Management expects net loss to decline ~70% and Adjusted EBITDA loss to fall ~54% for FY26, with stable topline. They aim to close a bridge financing by June 30, 2026, and complete a warrant exchange tender offer. They are also focusing on improving unit economics, with preliminary contribution margin ~$20 per booking in January 2026.