Zoomcar expands into bike rentals as Q1 loss widens to $5.4 million
Car rental marketplace Zoomcar reported a first-quarter net loss of $5.4 million, a 29% increase year-over-year, as it expanded its offerings to include motorcycle and scooter rentals.
Car rental platform Zoomcar saw its net loss widen to $5.4 million in the first quarter of FY27, an increase from $4.2 million in the same period last year. Total revenue saw a modest 2% year-on-year increase to $2.4 million, while gross booking value decreased by 10%.
Zoomcar attributes the decline in bookings to a strategic shift towards longer, higher-value trips, stating that extended rentals yield more revenue at similar operational costs. The company also reported a significant 38% reduction in cost of revenue, leading to a gross profit margin of 65%, due to improved insurance coverage and loss-prevention measures.
Despite these operational improvements, Zoomcar faces substantial financial headwinds. Management has raised substantial doubt about the company’s ability to continue as a going concern, citing negative working capital and a critically deficient cash position. The company is actively seeking additional debt or equity financing and implementing cost-cutting measures.
Amidst these financial challenges, Zoomcar has expanded its mobility offerings by launching motorcycle and scooter rentals in Bengaluru. The company has also partnered with Uber to integrate Uber Intercity rides within its app, aiming to enhance user options. Zoomcar has previously faced delisting from NASDAQ and a significant data breach.