ZCAR

Business Model and Platform Position

• Zoomcar operates an asset-light model: it does not own vehicles; independent hosts list their cars on the platform for customer (guest) self-drive bookings
• The platform serves over 100 cities in India, with over 42,000 onboarded cars and ~700,000 monthly rental sessions
• Platform metrics: average guest rating of 4.8/5, 58% of trips from repeat users (up 7 percentage points YoY without meaningful discounting), ~90% brand awareness (leading position in the Indian car rental market), organic traffic converts at twice the rate of paid traffic

Strategic Operational Changes

• Management deliberately reduced booking volumes this quarter to reposition the platform toward longer, higher-value trips, which deliver higher profit per trip with similar fixed serving costs
• Value per booking rose 7% YoY to ~$66
• The company has become more selective in onboarding new hosts to maintain service quality

Product Expansion

• Launched a two-wheeler (motorcycle and scooter) rental pilot in Bangalore, leveraging existing paid infrastructure (matching engine, host screening, support, tech stack) at a low incremental cost
• The Indian two-wheeler rental market is projected to reach ~$1 billion by 2030

Market Opportunity

• The Indian self-drive car sharing market is projected to expand from ~18.5 million users in 2025 to over 65 million users in 2031, representing a $28.5 billion total market opportunity
• Low car ownership per household in India means demand growth will be driven by vehicle access rather than individual ownership

Balance Sheet and Capital Structure Updates

• Completed a warrant tender offer approved by shareholders to simplify capital structure and consolidate the equity base in preparation for potential uplisting
• Ongoing debt restructuring to reduce balance sheet burden and move toward positive net worth with minimal cash burn
• One-time non-cash costs this quarter relate to settling legacy liabilities and closing pending litigation to strengthen the balance sheet going forward

• The company is actively pursuing growth capital to fund the next phase of expansion, with the goals of reaching adjusted EBITDA breakeven and driving long-term shareholder value creation
• A private placement bridge round targeting $1 million to $10 million (including over allotment) has raised $1.8 million to date
• Management is targeting a potential uplisting to a premier US national securities exchange by the end of 2026, though no binding timeline is committed, and the process remains subject to meeting all listing requirements (steps have already been taken to meet requirements)
• The company’s priority of building a fundamentally profitable cost structure is a sustained, irreversible strategic direction, even as it pursues future growth

Zoomcar operates a single core peer-to-peer car rental platform segment, with a newly launched two-wheeler rental pilot. For the core car rental segment (quarter ended June 30, 2026):

• Bookings: 88,160, a 16% year-over-year (YoY) decline (deliberate strategic reduction)
• Gross booking value: $5.83 million, a 10% reported YoY decline, flat in constant Indian rupee terms
• Reported revenue: 2% YoY growth, equal to ~10% YoY growth in Indian rupee terms
• Contribution profit: $1.65 million, the highest in company history, marking the 11th consecutive quarter of positive contribution profit
• Contribution profit per booking: $18.75, a 72% YoY increase
• Contribution margin as a share of net revenue: 70%, up 21 percentage points (2100 basis points) YoY
• Cost of revenue: $0.81 million, a 38% YoY decline
• Gross profit: 54% YoY increase on flat reported revenue
• Operating loss: $0.88 million, a 50% YoY reduction; $0.63 million excluding $0.25 million non-cash RSU expense, a 64% YoY improvement
• Adjusted EBITDA loss: $0.61 million, a 65% YoY narrowing, the smallest quarterly adjusted EBITDA loss in company history
• GAAP net loss: $5.37 million, wider than $4.21 million YoY, driven by one-time non-operating costs The new two-wheeler segment is in early pilot stage, with no material financial contribution reported this quarter.

• All forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, as detailed in the company’s SEC filings (including Form 10-K and quarterly Form 10-Q)
• The Indian rupee’s depreciation against the US dollar creates translation volatility for reported USD-denominated results
• Uplisting to a premier US national securities exchange is not guaranteed, as it remains subject to satisfying all exchange listing requirements
• Seasonality impacts quarterly financial results, so individual quarterly results do not necessarily represent the long-term operational trend

The provided transcript does not include a Question and Answer section, so there are no exchanges to summarize.