Company: ZCARW
Filing Date: 2025-03-28
Form Type: DRS
Source: 0001013762-25-003498
Chunk: 143

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-03-28
Form: DRS
Chunk 143
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 |  (3,716,804 | ) |     |     |     -8 | % |

Cost of Revenue

|                 |     | For the Years Ended March 31, |       2024 |     |   |       2023 |     |   | Change      |   |     |     |      % 
 Change |   |
|:----------------|:----|:------------------------------|-----------:|:----|:--|-----------:|:----|:--|:------------|:--|:----|:----|-------:|:--|
| Cost of revenue |     | $                             | 10,331,595 |     | $ | 20,675,611 |     | $ | (10,344,016 | ) |     |     |    -50 | % |

Cost of revenue was $10.33
million during the year ended March 31, 2024, as compared to $20.68 million during year ended March 31, 2023, a decrease of $10.34 million,
or 50%. This decrease was driven by overall Company-wide efforts to drive greater operational efficiency beginning in January 2023. Key
drivers of the cost savings include $3.78 million reduction in personnel costs (driven by headcount reductions in India, Egypt and the
closure of Vietnam as well as a $0.44 million decrease in ESOP related costs in the year ended March 31, 2024), a decrease of $1.52 million
of uncollected customer charges which charges were paid to the Host by the Company as part of its business customary practice, $0.91 million
of cost rationalization in our call centers for India primarily via enhanced chat bot options creating a better experience for our Host
and Guest directly and we also adjusted our toll and fuel policies, such that Guests are directly responsible for these costs, thereby
reducing the need of call center agents . Repair and maintenance charges were reduced by $0.54 million during the year ended March 31,
2024 by optimizing network of third party vehicle garages, entering new pricing contract with these garages, and reducing accident rate
by strengthening the Guest verification process.

We further achieved savings
of $0.38 million for rent charges due to the termination of leases associated with parking lots that are no longer needed since we developed
an in-app feature enabling Hosts and Guests to communicate directly on vehicle location and delivery and another $0.