Company: ZCARW
Filing Date: 2025-05-12
Form Type: S-1/A
Source: 0001213900-25-041769
Chunk: 309

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-12
Form: S-1/A
Chunk 309
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years) |     |              |  0.25 |   |
| Rate of interest       |     |              |  8.00 | % |
| Penal rate of interest |     |              |  8.00 | % |
| Cost of Debt*          |     |              | 14.60 | % |

| * | Cost of debt for commensurate term is considered as discount 
 rate for cash payment.                                       |

The assumptions for the valuation
of Atalaya Note as on December 31, 2024 have been updated since the last valuation. Until March 31, 2024, the settlement of Atalaya Note
could have been through either issue of shares or repayment of outstanding amount. During the nine months ended December 31, 2024, the
stock price of the Company was reduced below $ ($ prior to Second Reverse Stock Split and $ prior to First Reverse Stock Split)
and in accordance with the agreement on the breach of this stock price threshold, the Atalaya Note is to be settled mandatorily in cash.
The Company adopted discounted cash flow method to fair value the lability of Atalaya Note. The Company used the discount rate as per
CCC+ bond i.e., % for discounting the future cash outflow.

Derivative financial instruments

The Company measures its derivative
financial instruments at fair value based on significant inputs not observable in the market, which caused them to be classified as Level
3 measurements within the fair value hierarchy and used the Monte Carlo pricing model to calculate the fair value of the instruments.
Changes in the fair value of derivative financial instruments related to updated assumptions and estimates were recognized as change in
fair value of derivative financial instruments within the Condensed Consolidated Statements of Operations.

F-48 ZOOMCAR HOLDINGS, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The changes in the fair value are summarized below:

|                                                                                                                                                          |     | Preferred 
 stock     
 warrant   
 liability |            |   |     | Notes |            |   |     | SSCPN |             |   |     | Unsecured        
 Convertible      
 Note             
 (‘Atalaya Note’) |            |   |     | Derivative  
 financial   
 instruments |             |   |
|:---------------------------------------------------------------------------------------------------------------------------------------------------------|:----|:----------|-----------:|:--|:----|:------|-----------:|:--|:----|:------|------------:|:--|