#India #Bengaluru #Zoomcar #Car Sharing

Zoomcar Achieves Highest-Ever Contribution Profit

BENGALURU, India, January 9, 2025 — In a major announcement, Zoomcar Holdings, Inc. (NASDAQ: ZCAR), the leading car-sharing marketplace in India, has achieved unprecedented financial success. The company disclosed that it reached its highest-ever unaudited and unreviewed contribution profit for December 2024, amounting to $494,506. This milestone not only covers the operational costs for the month but also marks a significant turnaround for the company.

Growth in the Car-Sharing Market

The surge in December 2024 follows a remarkable 17% increase in bookings compared to the same month in the previous year. This trend highlights the growing popularity of Zoomcar's service among both Hosts and Guests, showcasing a robust movement toward car-sharing solutions in India. With a focus on customer satisfaction, Zoomcar is driving not just growth but a transformation in transportation options available to consumers.

Zoomcar's overall financial performance has improved drastically over the past year. In the fiscal quarters leading up to this achievement, the company reported:

• - First Fiscal Quarter 2024-25: A contribution profit of $460,000, marking a comeback from a loss of $1.2 million in the previous fiscal year.
• - Second Fiscal Quarter 2024-25: A record contribution profit of $1.21 million, which represented 54% of revenue, up from a loss of $120,000 a year earlier.

These impressive metrics illustrate a continuous upward trajectory in earnings and efficiency, as Zoomcar consistently improves its contribution profit for four consecutive quarters leading to December 2024.

Strategic Focus and Future Goals

Hiroshi Nishijima, the Interim CEO of Zoomcar, expressed optimism regarding the company’s trajectory. He stated, “Achieving this record contribution profit in our peak seasonal demand month reinforces that our business fundamentals are sound. By prioritizing customer experiences, we can enhance repeat bookings and encourage Host retention.” Nishijima highlighted the strategic focus on minimizing marketing expenditures, which fosters organic growth integral to the company's model.

Looking ahead, Zoomcar plans to reinvest profits back into further enhancing the customer experience and launching innovative products that add genuine value to its community. As the company gears up to enter 2025, it remains committed to empowering Hosts while ensuring affordable transportation for Guests.

Conclusion

The strong financial results and the growing acceptance of car-sharing solutions underscore Zoomcar’s position as a leader in India’s transportation landscape. By continuing to prioritize operational excellence and customer satisfaction, Zoomcar is poised to maintain its momentum and further drive financial sustainability in the car-sharing market

Financial Transparency and Non-GAAP Measures

It’s worth noting that this financial report follows U.S. generally accepted accounting principles (GAAP), but also includes non-GAAP measures to offer further insights into operational performance. Investors should regard the reported figures as preliminary and recognize that actual results can vary, reflecting ongoing accounting adjustments and processes.

As an innovative player in the mobility sector, Zoomcar continues to lead by example, demonstrating not just financial prowess but also a commitment to shaping the future of transportation in India.

About Zoomcar

Founded in 2013 and headquartered in Bengaluru, Karnataka, Zoomcar is dedicated to creating sustainable transportation solutions through its community-driven car-sharing platform that connects Hosts with Guests. With an ever-expanding network, Zoomcar is set to revolutionize how transportation is perceived within India’s fast-evolving market.