Greg Moran, the co-founder of Zoomcar, has been terminated as CEO after a 12-year tenure, the Bengaluru-based car rental company said in a regulatory filing.
“On June 20, 2024, Greg Moran, the company’s chief executive officer, was terminated from his role. Pursuant to Mr. Moran’s employment agreement, Mr. Moran is required to resign from the board of directors of the company (the “Board”) as a result of such termination,” the filing read.
ET reported the development first.
The company has been facing regulatory scrutiny over the market price of its Nasdaq-listed shares and its revenue projections, as per media reports.
Amid these challenges, the board has named Hiroshi Nishijima, the current chief operating officer, as its interim chief executive officer.
Meanwhile, the company has raised $3 Mn from institutional investors.
“Zoomcar Holdings Inc entered into a securities purchase agreement with certain institutional accredited investors pursuant to which the company issued and sold an aggregate of $3,600,000 in principal amount of notes and warrants to purchase up to an aggregate of 52,966,102 shares of company common stock for gross proceeds of $3,000,000. The closing occurred on June 20,” the SEC filing added.
Founded by Moran and David Back in 2013, Zoomcar is a marketplace for renting self-driving cars. The startup connects hosts with guests, who choose from a selection of cars for use at affordable prices.
Zoomcar India’s operating revenue declined 27% to INR 69.1 Cr in FY23 from INR 94.9 Cr in the previous fiscal year. The startup generates revenue from car rentals and subscriptions, among others.
The India entity posted a net loss of INR 237 Cr in the financial year 2022-23 (FY23), a jump of 221% from INR 74 Cr in the previous fiscal year.
Zoomcar started trading on Nasdaq on December 29 after a business combination with Cayman Island-registered Innovative International Acquisition Corp. Earlier this year, Zoomcar roped in former Flipkart and Hindustan Unilever executive Adarsh Menon as its president.
