Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 601

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 601
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 business, which will to a substantial extent affect our Hosts and Guests’ determination as to whether to utilize the platform
to book cars.

Monitor the rating and review
system on an ongoing basis to enforce quality standards and build trust among members of our community. We have procedures in place to
combat fraud or abuse of our rating and review system, but there is no assurance that these procedures are or will be effective, or at
all. Further, Hosts and Guests can leave reviews or ratings on third-party platforms or websites, which are out of our control and off
platform reviews and ratings or other statements about the platform, or a business or brand may have adverse impact on our business operations.
If any Hosts and Guests leave negative ratings and reviews, it may not only cause a decrease in the number of existing Hosts and Guests
but also may negatively affect acquisitions of new Hosts and Guests, which may adversely affect our business, financial conditions and
results of operations. Unreliable ratings and reviews could also make it more difficult for us to enforce quality standards, which could
damage our reputation and reduce trust within our community.

Additionally, our ability
to attract and retain Hosts and Guests is dependent in part on our ability to provide high-quality customer support services. Hosts and
Guests depend on our customer support centers to resolve any issues relating to our platform both during and after their trips. As we
continue to grow our business and improve our platform, we will face challenges related to providing high-quality support services at
scale. Any failure to maintain high-quality support, or a market perception that we do not maintain high-quality support, could harm our
reputation, and adversely affect our ability to scale our platform and business, our financial condition, and results of operations.

94

A former employee of Zoomcar India has instituted
a wrongful termination suit and claims that certain Zoomcar options have vested.

In February 2023, a former
employee of Zoomcar India instituted a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar
and IOAC challenging his termination, claiming approximately $400,000 in damages, and claiming that 100,000 options to purchase shares
of Zoomcar have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction to restrain
each of Zoomcar and IOAC from “alienating or dealing” the 100,000 shares of Zoomcar