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Zoomcar India Faces Fiscal Challenges: Reports 27% Revenue Dip and 3.2X Surge in Losses in FY23

Updated: Jan 13

Car-sharing platform Zoomcar India faced financial challenges in the fiscal year ending March 2023, reporting a 27% decline in revenue to Rs 69 crore, compared to Rs 95 crore in FY22.

Simultaneously, losses surged 3.2X to Rs 237 crore in FY23 from Rs 74 crore in FY22, highlighting a substantial financial strain. The cost of employee benefits emerged as the largest expenditure, accounting for 39% of the total expenses, which increased by 6.7% to Rs 127 crore in FY23.

While Zoomcar India claims to generate revenue from various sources, including commission on short-term rentals, subscriptions, and facilitation services, it did not provide a detailed revenue breakdown for FY23.

Despite cost management efforts, the dip in revenue and other income contributed to the significant increase in losses for Zoomcar India. The company, however, expressed confidence in achieving profitability in FY24.

As the platform operates across more than 50 cities globally, primarily in India, it has faced challenges, including disruptions related to the COVID-19 pandemic. The recent merger with Innovative International Acquisition Corp has made Zoomcar a publicly listed entity on Nasdaq. With over 3 million active users and more than 25,000 vehicles registered on its marketplace, Zoomcar aims to position itself as the largest emerging market-focused car-sharing platform, serving regions like India, MENA, and Southeast Asia.

However, the company will need to navigate financial hurdles and balance cost considerations with customer service to secure its future success.


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