On Thursday, Zoomcar Holdings, Inc. (NASDAQ:ZCAR) announced a significant achievement in its financial performance, reporting the highest-ever unaudited and unreviewed contribution profit for December 2024.

The company achieved $494,506 in contribution profit for the month, which was sufficient to cover its operational costs in India. It is to be noted that Zoomcar currently only operates in India and does not incur operational costs in any other country.

This result reflects a 17% increase in bookings compared to December 2023, underscoring the growing demand for Zoomcar’s platform in India and the rising adoption of car-sharing solutions.

Over the past year, Zoomcar has seen a remarkable recovery in its financials.

See Also: Zoomcar Stock Zooms Over 100% On Booking Surge And Website Upgrades: Details

In the first quarter of fiscal year 2024-25, the company reported a contribution profit of $0.46 million, a sharp recovery from a loss of $1.2 million in the same period the previous year.

This upward trajectory continued in the second fiscal quarter, where Zoomcar posted a contribution profit of $1.21 million, significantly improving from the prior year’s loss.

Interim CEO Hiroshi Nishijima attributed the company’s success to its focus on customer experience, which drives repeat bookings and strengthens host retention, all while reducing marketing expenses.

“This focus drives repeat bookings from Guests and strengthens Host retention, all while minimizing our spend on discounts and marketing—an organic flywheel of growth,” Nishijima said. 

Price Action: ZCAR shares closed lower by 3.26% at $1.78 on Wednesday.

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