Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 150

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 150
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076 | ) |
| Adjusted EBITDA     |     |                     | (17,845,538 | ) |     |   | (32,105,321 | ) |

Contribution Profit (Loss) and Contribution Margin

We define contribution profit
(loss) as our gross profit (loss) plus (a) depreciation expense included in cost of revenue, (b) stock-based compensation expense included
in cost of revenue, (c) other general costs included in cost of revenue (rent, software support, insurance, travel); less (i) Host incentive
payments and (ii) marketing and promotional expenses (excluding brand marketing).

We use contribution profit
(loss) and contribution margin as indicators of the economic impact of a new booking on our platform, as they capture the direct expenses
attributable to a new booking on our platform and the cost required to generate revenue. While certain contribution profit (loss) adjustments
may not be non-recurring, non-cash, non-operating, or unusual, contribution profit (loss) is a metric our management and board of directors
find useful, and we believe investors may find useful, in understanding the costs most directly associated with our revenue-generating
activities.

We recorded a contribution
loss of $0.98 million during the year ended March 31, 2024, versus a contribution loss of $14.23 million during the year ended March 31,
2023. Our gross loss improved to $0.43 million during the year ended March 31, 2024, versus a gross loss of $11.85 million during the
year ended March 31, 2023, which was driven by significant reductions in cost of revenue due to the overall improvements in Companywide
operational efficiencies accomplished over the past few quarters. In addition, host incentives and marketing costs (excl. brand marketing)
were reduced significantly to $2.73 million during the year ended March 31, 2024, versus $5.13 million during the year ended March 31,
2023, which further contributed to the reduction in contribution loss.

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Contribution profit (loss)
and contribution margin are non-GAAP financial measures with certain limitations regarding their usefulness; they should be considered
as supplemental in nature and are not meant as substitutes for gross profit /(loss) and gross margin, which are measures prepared in accordance
with GAAP. For purposes of calculating the non-GAAP financial measures, we utilize the GAAP financial