Zoomcar's Loss Zooms 66% YoY To $4.2 Mn In June Quarter

Car rental marketplace Zoomcar saw another disappointing quarter in the three-months ended June 2025. The Nasdaq-listed company posted a net loss of $4.2 Mn in the quarter, a jump of over 66% from the $2.5 Mn loss it incurred in the same quarter last year.

The Bengaluru-based company’s top line registered a marginal uptick in the quarter under review. Its revenue from services grew 5% to $2.3 Mn from $2.2 Mn a year ago.

Including an other income of $12.4K, Zoomcar’s total revenue for the quarter stood at $2.31 Mn. Meanwhile, the company managed to cut its expenses by 27% YoY to $4.1 Mn.

It also incurred an other expense of $2.2 Mn in the quarter as against a gain of $1.4 Mn in the previous year’s quarter.

With the loss in Q1, the company’s accumulated deficit now amounts to a whopping $337.4 Mn. It had a negative working capital of $27.8 Mn as of June 30, 2025. Zoomcar expects to continue to incur losses for at least one year.

“Management has evaluated the significance of the conditions described above in relation to the company’s ability to meet its obligations and concluded that, without additional funding, the company will not have sufficient funds to meet its obligations within one year from the date of the condensed consolidated financial statements are issued,” the company’s SEC filing read.

It is pertinent to note that this is a reiteration from Zoomcar about the uncertainty over its future. In November 2024, Zoomcar said that there is “substantial doubt” about its ability to continue as a going concern. Since then, it has reduced its negative working capital from $35 Mn.

Zoomcar informed the SEC on May 5 this year that it will raise up to $15 Mn. However, no funds have been raised till now. The company last raised $9.2 Mn in November 2024 via private placement of shares to certain institutional investors.

As of now, the cash-starved company plans to raise fresh capital through additional debt or equity financing, implement initiatives to improve customer experiences and control its spends.

Meanwhile, Zoomcar, in a statement, claimed that its contribution profit “soared” to $1.14 Mn in the June quarter of 2025, with a near 50% margin and a seven-quarter profitability streak.

The company said that its adjusted EBITDA loss reduced 47% YoY to $1.7 Mn, while loss from operations narrowed 48% YoY to $1.8 Mn.

“With a record contribution profit and a seventh consecutive profitable quarter on a contribution basis, we believe we’re moving firmly in the right direction. We remain focused on improving the customer experience and leveraging technology to unlock greater value for our guests and hosts,” Zoomcar’s recently appointed CEO Deepankar Tiwari said.

In its statement, the company also noted that its bookings declined marginally by 7% to 1,04,549 for Q1 as compared to 1,12,944 for the comparable quarter.

Amid the financial crisis, the company’s shares have declined by more than 85% year to date. As of now, the stock is trading at $0.52 on the Nasdaq.

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