Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 1079

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 3
Chunk 1079
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 reputation, limit our growth, increase
our costs, and negatively affect the results of 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, 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
our business, we collect, use, store, transmit, and process data and information about Hosts, Guests, employees, and others, some of which
may be sensitive, personal, or confidential and make us an attractive target and potentially vulnerable to cyberattacks, computer viruses,
electronic break-ins, or similar disruptions. Any actual or perceived unauthorized access to or use of such data and information, or breach
of our security measures or those of our third-party service providers, could adversely affect our business, operations, and future prospects.
While we have taken steps to mitigate our cyberattack risks and protect the confidential information that we have access to, including
but not limited to installation and periodical updates of antivirus software and