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Roadzen Reports Record Revenue Growth in its First Fiscal Year as a Public Company

NEW YORK, July 01, 2024 (GLOBE NEWSWIRE) — Roadzen Inc. (Nasdaq: RDZN) (“Roadzen” or the “Company”), a global leader in AI at the convergence of insurance and mobility, today announced its results for the twelve-months ended March 31, 2024.

“Roadzen had a remarkable year, achieving substantial revenue growth, maintaining our trajectory towards profitability, and significantly expanding our presence in the U.S. and U.K. markets, along with continued strong growth in India,” commented Rohan Malhotra, CEO and Founder of Roadzen. “Our advanced technology group and AI research lab now support a robust global client base and infrastructure, including 101 large enterprise clients, such as leading insurers, automakers, and large fleets, in addition to approximately 3,200 small and medium businesses, including agents, brokers, dealerships, and smaller fleets. Looking ahead, we anticipate continued momentum and establishing Roadzen as a leader in vertical AI for auto insurance within the public markets, leveraging the strong foundation we’ve built over the past year.”

Jean-Noël Gallardo, Roadzen’s CFO commented, “In preparation for 2024 year-end, we focused on simplifying and streamlining the organizational structure and internal financial reporting protocols to ready the Company for scale and another breakout year in 2025. We also focused on streamlining operations and eliminating redundancies. This allowed us to rationalize small subsidiaries that no longer align with our strategy, yielding a 7% reduction in headcount and the closure of under-performing assets.”

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1Adjusted EBITDA is a non-GAAP financial metric. See “Non-GAAP Financial Measures” at the end of this press release for more information, including a reconciliation to the nearest GAAP financial measure.


Fiscal Year Highlights

Revenue and Key Performance Indicators

Expenses and Net Results

Balance Sheet

Russell Indexes

About Roadzen Inc.
Roadzen Inc. (Nasdaq: RDZN) is a global technology company transforming auto insurance using advanced artificial intelligence (AI). Thousands of clients, from the world’s leading insurers, carmakers, and fleets to dealerships and auto insurance agents, use Roadzen’s technology to build new products, sell insurance, process claims, and improve road safety. Roadzen’s pioneering work in telematics, generative AI, and computer vision has earned recognition as a top AI innovator by publications such as Forbes, Fortune, and Financial Express. Roadzen’s mission is to continue advancing AI research at the intersection of mobility and insurance, ushering in a world where accidents are prevented, premiums are fair, and claims are processed within minutes, not weeks. Headquartered in Burlingame, California, the Company has 380+ employees across its global offices in the U.S., India, U.K. and France. To learn more, please visit www.roadzen.ai.

Cautionary Statement Regarding Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “pipeline,” “leads,” “estimate,” and “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding our strategy, demand for our products, expansion plans, future operations, future operating results, estimated revenues, losses, projected costs, prospects, plans and objectives of management, as well as all other statements other than statements of historical fact included in this press release. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in “Risk Factors” in our Securities and Exchange Commission (“SEC”) filings, including the definitive proxy statement/prospectus we filed with the SEC on August 14, 2023. We urge you to consider these factors, risks and uncertainties carefully in evaluating the forward-looking statements contained in this press release. All subsequent written or oral forward-looking statements attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. The forward-looking statements included in this press release are made only as of the date of this release. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

 
Roadzen Inc.
Consolidated Balance Sheets
(in US$, except per share data and share count)
     
Particulars   As of March 31,
2024
As of March 31,
2023
Assets      
Current assets:      
Cash and cash equivalents   11,186,095   589,340  
Accounts receivable, net   3,652,380   1,535,985  
Inventories   70,667   59,897  
Prepayments and other current assets   34,426,335   3,181,936  
Investments   507,094    
Total current assets   49,842,571   5,367,158  
Restricted cash   378,993   542,490  
Non marketable securities   1,514,796   4,910,030  
Property and equipment, net   454,589   232,493  
Goodwill   2,061,553   996,441  
Operating lease right-of-use assets   822,327   545,988  
Intangible assets, net   2,989,604   2,469,158  
Other long-term assets   71,913   117,484  
Total assets   58,136,346   15,181,242  
       
Liabilities, mezzanine equity and stockholders’ deficit      
Current liabilities      
Current portion of long-term borrowings   2,228,471   2,852,528  
Short-term borrowings   15,754,829   4,875,801  
Due to insurer   8,918,849    
Accounts payable and accrued expenses   29,573,638   6,241,066  
Derivative warrant liabilities   5,585,955    
Short-term operating lease liabilities   358,802   208,697  
Other current liabilities   3,231,962   2,503,893  
Total current liabilities   65,652,506   16,681,985  
Long-term borrowings   1,472,933   653,269  
Long-term operating lease liabilities   268,856   360,306  
Other long-term liabilities   1,241,917   294,301  
Total liabilities   68,636,212   17,989,861  
       
Commitments and contingencies (refer note 26)      
       
Mezzanine equity      
None authorized or issued as of March 31, 2024; Series A and A1 preferred stock and additional paid in capital, $0.0001 par value per share, 81,635,738 shares authorized (Series A 5,442,383 and Series A1 76,193,356); 39,868,173 shares issued and outstanding as on March 31, 2023.     48,274,279  
Shareholders’ deficit      
Preference shares, $0.0001 par value per share, 60,000,000 shares authorized and none issued as of March 31, 2024 and none authorized or issued as of March 31, 2023      
Ordinary Shares and additional paid in capital, $0.0001 par value per share, 220,000,000 shares authorized as of March 31 2024 and $0.0001 par value per share, 108,840,000 shares authorized as of March 31, 2023; 68,440,829 shares and 16,501,984 shares issued and outstanding as of March 31, 2024 and March 31, 2023 respectively   84,974,378   303,213  
Accumulated deficit   (151,008,419 ) (51,448,299 )
Accumulated other comprehensive income/(loss)   (600,501 ) (66,903 )
Other components of equity   56,560,706   366,786  
Total shareholders’ deficit   (10,073,836 ) (50,845,203 )
Non-controlling interest   (426,030 ) (237,695 )
Total deficit   (10,499,866 ) (51,082,898 )
Total liabilities, Mezzanine equity and Shareholders’ deficit, Non-controlling interest   58,136,346   15,181,242  
       
       
Roadzen Inc.
Consolidated Statements of Operations
(in US$, except per share data and share count)
 
    For the year ended
March 31,
Particulars   2024   2023  
Revenue   46,724,287   13,560,498  
Costs and expenses:      
Cost of services   18,132,757   5,413,686  
Research and development   4,973,816   2,670,333  
Sales and marketing   33,195,608   10,736,173  
General and administrative   65,895,085   4,648,242  
Depreciation and amortization   2,185,858   1,624,208  
Total costs and expenses   124,383,124   25,092,642  
Loss from operations   (77,658,837 ) (11,532,144 )
Interest income/(expense)   (2,291,123 ) (776,023 )
Fair value gains/(losses) in financial instruments carried at fair value   (19,475,005 ) (1,009,374 )
Gain on deconsolidation of subsidiaries   2,098,745    
Impairment of goodwill and intangibles with definite life     (919,517 )
Impairment of investment   (3,395,234 )  
Other income/(expense) net   838,728   (6,358 )
Total other income/(expense)   (22,223,889 ) (2,711,272 )
(Loss)/Income before income tax expense   (99,882,726 ) (14,243,416 )
Less: income tax (benefit)/expense   (23,648 ) (42,265 )
Net (loss)/income before non-controlling interest   (99,859,078 ) (14,201,151 )
Net loss attributable to non-controlling interest, net of tax   (189,743 ) (176,883 )
Net (loss)/income attributable to Roadzen Inc.   (99,669,335 ) (14,024,268 )
       
       
Net (loss)/income attributable to Roadzen Inc. ordinary shareholders   (99,669,335 ) (14,024,268 )
Basic and diluted   (2.26 ) (0.86 )
       
Weighted-average number of shares outstanding used to compute net loss per share attributable to Roadzen Inc. ordinary shareholders   44,032,410   16,501,984  
       
           
Roadzen Inc.
Consolidated Statements of Cash Flow
(in US$)
    For the year ended
March 31,
Particulars   2024   2023  
       
Cash flows from operating activities      
Net loss including non controlling interest   (99,859,078 ) (14,201,151 )
Adjustments to reconcile net loss to net cash used in operating activities:      
Depreciation and amortization   2,185,858   1,624,208  
Stock based compensation   56,303,135    
Deferred income taxes   (86,020 ) (131,378 )
Unrealised foreign exchange loss/(profit)   (459,190 ) 9,184  
Fair value losses in financial instruments carried at fair value   19,475,005   1,009,374  
Gain on deconsolidation of subsidiaries   (2,098,745 )  
Gain on fair valuation of investments   (1,812 )  
Impairment of investment   3,395,234    
Gain on sale of property and equipment     (625 )
Expected credit loss (net of reversal)   293,853    
Provision on doubtful advances and receivables   4,877,222    
Lease equalisation reserve     (9,675 )
Impairment loss     919,517  
Balances written off/(back)   (51,513 ) 7,164  
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions:      
Inventories   (11,688 ) (9,352 )
Income taxes, net   (64,243 ) (55,766 )
Accounts receivables, net   5,865,550   (943,470 )
Prepayments and other assets   (23,861,458 ) (529,692 )
Accounts payable and accrued expenses and other current liabilities   19,344,448   4,193,439  
Other liabilities   (674,090 ) 571,519  
Net cash used in operating activities   (15,427,532 ) (7,546,704 )
       
Cash flows from investing activities      
Purchase of property and equipment, intangible assets and goodwill   (455,924 ) (842,045 )
Proceeds from sale of property, plant and equipment     686  
Acquisition of businesses   (5,749,200 )  
Investment in mutual funds   (500,000 )  
Net cash used in investing activities   (6,705,124 ) (841,359 )
       
Cash flows from financing activities      
Proceeds from business combination   26,824    
Proceeds from issue of preferred stock   6,079,409   458,000  
Proceeds from exercise of preferred share warrants     9,996  
Proceeds from long-term borrowings   2,438,014   4,107,029  
Repayments of long-term borrowings   (11,684 ) (612,645 )
Net proceeds/(payments) from short-term borrowings   13,039,186   4,398,343  
Net cash generated from financing activities   21,571,749   8,360,723  
Effect of exchange rate changes on cash and cash equivalents   (244,444 ) 72,752  
Net (decrease)/increase in cash and cash equivalents (including restricted cash)   (805,351 ) 45,412  
Cash acquired in business combination   11,238,609    
Cash and cash equivalents at the beginning of the period (including restricted cash)   1,131,830   1,086,418  
Cash and cash equivalents at the end of the period (including restricted cash)   11,565,088   1,131,830  
       
Reconciliation of cash and cash equivalents      
Cash and cash equivalents   11,186,095   589,340  
Restricted cash   378,993   542,490  
Total cash and cash equivalents   11,565,088   1,131,830  
       
Supplemental disclosure of cash flow information      
Cash paid for interest, net of amounts capitalized   623,525   457,177  
Cash paid for income taxes, net of refunds     141,228  
Non-cash investing and financing activities      
Exercise of warrant for issuance of convertible preferred stock     103,159  
Convertible preferred stock issued on conversion of convertible notes     24,006,892  
Consideration payable in connection with acquisitions   488,000   243,036  
Interest accrued on borrowings   451,323   257,188  
       

Non-GAAP Financial Measures
This press release includes Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (“Adjusted EBITDA”), is a non-GAAP financial measure which excludes the impact of finance costs, taxes, depreciation and amortization and certain other items from reported net profit or loss. We believe that Adjusted EBITDA aids investors by providing an operating profit/loss without the impact of non- cash depreciation and amortization and certain other items to help clarify sustainability and trends affecting the business. For comparability of reporting, management considers non-GAAP measures in conjunction with U.S. GAAP financial results in evaluating business performance. Adjusted EBITDA should not be considered a substitute for, or superior to, the measures of financial performance prepared in accordance with U.S. GAAP. In addition, Adjusted EBITDA does not purport to represent cash flow provided by, or used for, operating activities in accordance with GAAP and should not be used as a measure of liquidity.

Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under GAAP. For example, other companies in our industry may calculate these non-GAAP financial measures differently or may use other measures to evaluate their performance. These limitations could reduce the usefulness of these non- GAAP financial measures as analytical tools. Investors are encouraged to review the related GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable GAAP financial measures and to not rely on any single financial measure to evaluate our business.

The following table reconciles our net loss reported in accordance with U.S. GAAP to Adjusted EBITDA:

  For the year ended
March 31,
Particulars 2024   2023  
Net loss (99,859,078 ) (14,201,151 )
Adjusted for:    
Other (income)/expense net (838,728 ) 6,358  
Interest (income)/expense 2,291,123   776,023  
Fair value changes in financial instruments carried at fair value 19,475,005   1,009,374  
Gain on deconsolidation of subsidiaries (2,098,745 )  
Impairment of goodwill and intangibles with definite life   919,517  
Impairment of investment 3,395,234    
Tax (benefit)/expense (23,648 ) (42,265 )
Depreciation and amortization 2,185,858   1,624,208  
Stock based compensation expense 56,303,135    
Non-cash expenses 1,048,353    
Non-recurring expenses 7,685,859    
Adjusted EBITDA (10,435,632 ) (9,907,936 )

For more information, please contact:

Investor Contacts: IR@roadzen.ai

Media Contacts:
Roadzen: Sanya Soni sanya@roadzen.ai or media@roadzen.ai
Gutenberg: roadzen@thegutenberg.com


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