Zoomcar CEO Greg Moran Terminated by Car-Sharing Platform

In a regulatory statement, the Bengaluru-based car rental company Zoomcar revealed that co-founder Greg Moran has been fired as CEO following a 12-year stint. This marks a significant change for the company as it navigates ongoing regulatory reviews and market challenges.

Regulatory Review and Revenue Projections

According to sources, Zoomcar has been under regulatory review concerning the market price of its Nasdaq-listed shares and its revenue projections. The board has appointed Hiroshi Nishijima, the company’s Chief Operating Officer, as the interim chief executive officer.

SEC Filing Details

"On June 20, 2024, Greg Moran, the company’s chief executive officer, was terminated from his role. Pursuant to Moran’s employment agreement, Moran is required to resign from the Board of Directors of the company as a result of such termination," read SEC filings as of June 21.

Financial Developments

On the same date as Moran's termination, the firm disclosed raising $3 million from institutional investors. Zoomcar Holdings Inc. entered into a securities purchase agreement with a few institutional accredited investors. 

Under which the company sold and issued notes totaling $3,600,000 in principal, along with warrants to buy up to 52,966,102 shares of common stock at a maximum price of $3,000,000, generating $3,000,000 in gross proceeds. According to SEC records, the closing took place on June 20."

Revenue Projection Concerns

On February 5, SEC filings indicated that the regulator sought clarity on the firm's revenue projections. "We note that the projected revenues for 2023 were $21.6 million, as set forth in the analysis of financial advisors and in connection with the evaluation of the business combination.

We also note that your actual revenues for the year ended March 31, 2023 were $8.8 million. It appears that you will miss your 2023 revenue projection," the filings said.

Moran's Farewell

On LinkedIn, Moran wrote that this week marks the end of a decade-plus journey at the helm building Zoomcar. "I couldn't be more proud of what we've built in India and beyond as we introduced the power of car sharing to millions of new consumers across countless cities. Special shoutout to the entire Zoomcar team and our loyal customers for the continuous support along the way," he wrote.

Company Background

In 2013, David Back and Greg Moran founded Zoomcar. The organization, which has its headquarters in Bengaluru, offers hourly, daily, weekly, and monthly car rental services to its clients. Mahindra & Mahindra, Ford Smart Mobility, Nexus Venture Partners, Peak XV, and other angel investors have all made investments in Zoomcar.

Recent Corporate Developments

ET Prime reported the developments first. In 2023, Zoomcar completed its merger with blank-check company Innovative International Acquisition Corp (IOAC) through a SPAC deal and was listed on the Nasdaq.

The merger with the special purpose acquisition company implies a pro forma enterprise value of about $456 million for the business. Before the firm's move to go for a public listing, it had raised more than $400 million in funding.

Conclusion

The termination of Greg Moran as CEO of Zoomcar marks the end of an era for the company. As the firm navigates regulatory reviews and adjusts its revenue projections, the appointment of Hiroshi Nishijima as interim CEO represents a new chapter in its journey. The recent financial developments and past achievements set a dynamic stage for Zoomcar's future in the competitive car-sharing market.