Zoomcar, India’s leading car-sharing marketplace, narrowed its FY25 net loss to $25.62 million, an improvement from $34.27 million in FY24, thanks to significant cost reductions and operational efficiency. Despite the gains, net revenue fell to $9.1 million, signaling continued challenges in top-line growth. Zoomcar FY25 loss reflects both progress and the road ahead for profitability.
🏆 Highlights of the FY25 Performance
- Loss Reduction: Net loss dropped 25% from $34.27M to $25.62M .
- Revenue Dip: Net revenue declined ~8% to $9.1M from $9.9M in FY24
- Bookings Growth: Total bookings rose 10% to 426,788, up from 387,821
🛠️ Cost Optimization & Profitability Metrics
- Cost of Revenue slashed by 49% to $5.30M from $10.33M inc42
- Marketing costs cut 75%, G&A down 43%, tech expenses trimmed 32%
- Total expenses decreased from $41.57M to $19.51M
- Record contribution profit: $4.25M (47% of revenue)—first-time positive contribution ever
📉 Operating Efficiency & Loss Reduction
- Operating loss dropped by 67% to $10.40M, from $31.67M
- Adjusted EBITDA loss improved by 44%, falling to $9.91M
🔍 Strategic Moves & User Experience
- Guest satisfaction: Average trip ratings climbed from 4.16 to 4.70
- Higher-quality vehicles: Cars rated 4.5+ increased to 49% of fleet (vs 31% last year)
- Repeat users jumped 86%, comprising 13% of bookings (vs 7%)
- New partnerships: Collaborations with CARS24 for inspections and GPS-tracking to boost safety and host quality
✅ What It Means & the Road Ahead
Zoomcar’s dramatic expense cuts and its first-ever contribution profit suggest unit-level health, but the decline in revenue underscores that sustainable growth remains a challenge. With a clear path to lowering fixed costs and elevating service standards, the company looks poised to build on this momentum moving forward.
