Adarsh Menon, who brought over 20 years of experience from Flipkart and Hindustan Unilever, joined Zoomcar as Global President in January 2024. His appointment was expected to enhance operational efficiency and provide valuable industry insights to the Nasdaq-listed self-driving car marketplace.
However, Menon’s tenure was unexpectedly brief, lasting only six months. His resignation, effective June 30, 2024, comes at a crucial juncture for the company, which is facing significant leadership and financial hurdles.
Why did Adarsh Menon resign?
According to SEC filings, Menon’s resignation was not due to any disagreements with the company. The filing states:
“On June 26, 2024, Mr. Adarsh Menon, the President of Zoomcar Holdings, Inc. (the ‘Company’), resigned from his role effective June 30, 2024. Mr. Menon’s departure was not related to any disagreements with the Company.”
The specific reasons for his departure remain unclear, but his exit follows closely on the heels of the termination of co-founder and former CEO Greg Moran. This series of leadership changes has raised concerns about the company’s strategic direction and stability.
How is Zoomcar performing financially?
Zoomcar’s recent financial performance has been underwhelming. For the quarter ending December 31, 2023, the company reported a 19% decline in net revenue, falling from $3 million to $2.4 million compared to the same period the previous year, primarily due to decreased gross bookings.
Despite these setbacks, Zoomcar projects revenue of around $9.8 million for FY24, up from $8.6 million in FY23. The company also expects a significant reduction in net loss, from $62 million in FY23 to $34 million in FY24.
Addressing Financial Challenges
To improve its financial outlook, Zoomcar has adopted aggressive cost-cutting measures. These include reducing personnel costs, closing certain subsidiaries, streamlining its workforce, and cutting expenses at its India-based call centers.
The company is also focusing on longer-duration bookings to boost revenue and has shifted to a direct settlement process to reduce incentive payments to hosts.
Nevertheless, Zoomcar’s stock performance remains poor, with shares trading at $0.19, reflecting a nearly 100% decline since its Nasdaq listing.
