Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 172

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 172
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ilitation revenue

Zoomcar Host Services is a marketplace
feature of the platform that helps owners of vehicles (“Hosts/ Customer/Lessors”) connect with users (“Renters/Lessee”)
in temporary need of a vehicle on leasehold basis for their personal use.

Facilitation Services revenue consists
of facilitation fees charged to Hosts, net of incentives and refunds and trip protection charged to the Renters. The Company’s primary
performance obligation in the transaction towards the Host is to facilitate the successful completion of the rental transaction and towards
the renter is to offer trip protection.

Customer support is rendered to both
the Host (customer/lessor) and the renter (lessee). Company being the intermediary between the two provides its platform through which
all communication takes place related to any services e.g., extension of trip period. Such services also include the normal customer support
related to any vehicle breakdowns, tracking of vehicles, renter background checks, vehicle ownership checks and various other activities
which are part of an ongoing set of series required for successful listing, renting and completion of trip. These activities are not distinct
from each other and are not separate performance obligations. As a result, these series of services integrate together to form a single
performance obligation.

In case of booking value collected
from the renter on behalf of the Host, the Company evaluated the presentation of revenue on a gross versus net basis based on factors
given under ASC 606 whether or not it is the principal (gross) or the agent (net) in the transaction and concluded that it is acting in
an agent capacity, and revenue is presented net reflecting the facilitation fees received from the Marketplace service. The customer simultaneously
receives and consumes the benefits provided by the entity’s performance as the entity performs. Revenue is recognized ratably over
the trip period on straight line basis using the output method as its performance obligation is satisfied over time.

The Company offers various incentive programs to hosts. The incentives
are recorded in accordance with ASC 606- 10-32-25 and ASC 606-10-32-27 as a reduction to revenue and in cases where the amount of incentive
paid to the Host are above the facilitation fees earned from that Host on cumulative basis, the excess of the revenue amount is recorded
as a marketing expense in the Consolidated Statements of Operations. These incentives are offered as part of overall marketing strategy
of the Company and incentivize the hosts to refer the platform.

F-11

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