Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 204

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 204
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In the peer-to-peer car sharing
model, we continued to take several measures to improve profitability, such as (i) reduction of cash incentives paid to Hosts and (ii)
introduction of cancellation fees for Host and Guest. These and other cost rationalization strategies resulted in improved unit profitability
at the expense of reduced number of bookings for the three months ended on June 30, 2025, versus the previous comparable period.

48

Costs and Expenses

Cost of Revenue 

    For the Three Months Ended 
June 30, 

    2025  
    2024  
    Change  
    Change % 
  
    Cost of revenue 
    $1,313,687  
    $1,512,289  
    $(198,602) 
     -13%

Cost of revenue was $1.31
million during the three months ended on June 30, 2025, as compared to $1.51 million during the three months ended on June 30, 2024, a
decrease of $0.20 million, or 13%. This decrease was driven by overall Company-wide efforts to drive greater operational efficiency. Key
drivers of the cost savings include $0.14 million reduction in personnel costs (driven by headcount reductions in India, and discontinuation
of operations in Vietnam, Egypt and Indonesia), there were cost savings of $0.05 million on account of depreciation on tracking devices
during the three months ended June 30, 2025, as compared to the three ended June 30, 2024, since majority of the devices were completely
depreciated in the previous Fiscal year ending March 31, 2025. Due to discontinuation of operations in Egypt, Indonesia and Vietnam there
was savings of $0.04 million during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024.

Technology and Development

    For the Three Months Ended 
June 30, 

    2025  
    2024  
    Change  
    Change % 
  
    Technology and development 
    $709,331  
    $901,781  
    $(192,450) 
     -21%

Technology and development expenses totaled $0.71
million during the three months ended on June 30, 2025, as compared to $0.90 million during the three months ended