Grappling with operational uncertainties and mounting debt, Nasdaq-listed rental car marketplace Zoomcar seems to be on track to resolve some of its troubles. In a statement on Thursday (January 9), the company claimed to have attained its “highest-ever” unaudited and unreviewed contribution profit in December 2024.

The Bengaluru-based company claimed to have realised a contribution profit of $495K in the month, which it says was sufficient to cover its operational costs in India. The company attributed the upticks in its financials to 17% growth in bookings in December.

It is pertinent to mention that these claims are Zoomcar’s estimates and are subject to revision until it reports its full financial and business results for the third quarter of the fiscal year 2024-2025 (Q3 FY25) on February 12.

In the preceding quarter, the company managed to cut its consolidated net loss by 72.9% to $3.35 Mn from $12.40 Mn in Q2 FY24. Meanwhile, Zoomcar’s revenue also dipped 16.7% year-on-year (YoY) to $2.23 Mn in the quarter from $2.68 Mn in the September quarter last year.

This was the third straight quarter of decline in revenues. Besides, the company also saw significant changes in its top deck, as well as its offerings, in 2024. Things were so bad that Zoomcar said that it was unsure of its future at the end of the September quarter.

All of these also resulted in a sharp decline in the company’s share price. On Thursday, the stock was trading at $1.78 on the Nasdaq.

So, how is the company dealing with its turmoil? In a conversation with Inc42 last month, Zoomcar’s interim CEO & COO Hiroshi Nishijima outlined a three-pronged strategy to address the challenges — improve cashflow, repay debt, and reduce expenses.

Fixing The Financial Health

On November 14, Zoomcar informed the SEC that it has “

© Inc42