Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 273

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 273
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 cause booking volume to decline, which
would harm our business and operating results.

Our operations have grown substantially
since our inception, and we expect that they will continue to do so, subject to our financial condition. If we are unable to effectively
manage that growth, our financial performance and future prospects will be adversely affected. 

Since our inception, we have
experienced significant growth in the scale of our operations. This expansion increases the complexity of our business and places significant
strains on our management, personnel, operations, systems, technical performance, financial resources, and internal financial control
and reporting functions. We may not be able to manage growth effectively, which could damage our reputation, limit our growth, increase
our costs, and negatively affect the results of our operations. Our business is becoming increasingly complex, and this complexity and
our rapid growth have demanded, and will continue to demand, substantial resources and attention from our management.

Further, to accommodate our
expected growth, we must improve and maintain our platform, technology, systems, and network infrastructure. Failure to effectively upgrade
our technology or network infrastructure to support the expected increased traffic on our platform could result in unanticipated system
disruptions, slow response times, or poor experiences for Hosts and Guests. To manage the expected growth of our operations and to support
financial reporting requirements, we will need to improve our transaction processing and reporting, operational and financial systems
and reporting, procedures, and controls. These improvements will be particularly challenging to realize if we acquire new operations with
different systems or if we continue to rely on manual financial reporting practices. Our current and planned personnel, systems, procedures,
and controls may not be adequate to support our future operations. If we are unable to expand our operations, improve our financial reporting
processes, and hire additional qualified personnel in an efficient manner, it could adversely affect our business, customer and investor
satisfaction, compliance with regulations and laws, and cause our expenses to grow disproportionately relative to our revenue, and our
financial performance and future prospects will be adversely affected.

Breaches and other
types of security incidents of our networks or systems similar to the recent Cybersecurity Incident, or those of our third-party service
providers, could negatively impact our business, our brand and reputation, our ability to retain existing Hosts and Guests and attract
new Hosts and Guests, may cause us to incur significant liabilities and adversely affect our business, results of operations, financial
condition, and future prospects. 

In the regular course of