Zoomcar Reports Strong Profit Growth and Improved Performance in FY25

Zoomcar Achieves Record Profit Growth in FY25

In a noteworthy financial turnaround, Zoomcar Holdings, Inc., India's premier car-sharing platform, has announced impressive results for the fiscal year ending March 31, 2025. The company reported a record contribution profit of $4.25 million, marking a significant increase from the previous year's loss, as CEO Deepankar Tiwari heralds this year as pivotal for the firm.

Strong Financial Performance

The completion of FY25 saw Zoomcar attaining a contribution profit representing 47% of its revenue, a stark contrast to the $(0.98) million loss recorded in FY24. Each booking generated a contribution profit of $9.96, a remarkable recovery from the previous fiscal year where it reported a loss of $(2.52) per booking. The company celebrated its sixth consecutive profitable quarter based on contribution metrics, a testament to its robust financial health.

Growth in Bookings and Repeat Users

One of the notable highlights for Zoomcar this fiscal year was the sustained growth in its bookings. The total bookings grew by 10% year-over-year, increasing from 387,821 in FY24 to 426,788 in FY25. The repeat user rate saw a phenomenal surge of 86% compared to 7% in the previous year, attributed to continual enhancements made in its product offerings and customer loyalty initiatives.

Cost Optimization Initiatives

Zoomcar implemented significant cost optimization strategies that played a crucial role in its improved profitability. The cost of revenue plummeted by 49%, shrinking from $10.33 million in FY24 to $5.30 million in FY25. Additionally, the company slashed its marketing expenses by an impressive 75%, with general and administrative costs reducing by 43% and technology-related expenditures by 32%. This proactive approach saw overall costs drop from $41.57 million in FY24 to $19.51 million in FY25.

Enhanced Customer Experience

Another critical factor in boosting performance has been the elevated focus on customer satisfaction. The average trip rating for guests improved considerably, rising to 4.70 from the previous year’s rating of 4.16. Furthermore, the number of high-quality cars, rated at 4.5 or above, also increased to 58%, offering guests a better vehicle lineup for their rentals.

Progress on Profitability and Loss Mitigation

Zoomcar has seen a commendable 44% improvement in its adjusted EBITDA losses, which decreased from $(17.85) million to $(9.91) million. The loss from operations witnessed an even steeper decline of 205%, reducing from $(31.67) million in FY24 to just $(10.40) million this year, showcasing effective operational management.

Operational Excellence

To enhance vehicle quality and operator transparency, Zoomcar has rolled out advanced vehicle inspection processes alongside GPS safety protocols in collaboration with a leading partner. The firm is also preparing to introduce new business tools to aid fleet operators in managing and expanding their inventory effectively on its platform.

AI and Future Prospects

Early implementations of AI-driven support features and fraud detection systems have not only optimized platform efficiency but have also fostered greater trust among customers. These steps are critical as Zoomcar gears up for a future characterized by technology-driven growth and shared mobility.

Upcoming Earnings Call

Investors and stakeholders interested in learning more about Zoomcar's financial progress will have an opportunity during its upcoming earnings call on June 30, 2025. Registration details are available on its investor relations platform.

About Zoomcar

Founded in 2013 and stationed in Bengaluru, Zoomcar has become the leading marketplace for peer-to-peer car sharing across India. Through its user-friendly platform, it connects car owners (hosts) and users (guests), promoting self-driven mobility solutions that are both economically viable and environmentally conscious.

Conclusion

In summary, FY25 has proven to be a watershed year for Zoomcar, marked by impressive financial metrics and strategic advancements aimed at enhancing user experience. With a focus on profitability and sustainability, Zoomcar sets a robust groundwork for future growth in the evolving mobility landscape.