Revenue and Business Model - Roadzen's revenue for the three months ended June 30, 2025, was derived 53% from Brokerage Solutions and 47% from the IaaS Platform[222]. - The IaaS Platform accounted for approximately 47% of total revenues, while the Brokerage Solutions accounted for approximately 53%[209][211]. - Roadzen's business model is capital light, meaning it does not underwrite any risk itself, generating revenue primarily through commissions and fees[206]. - Revenue for the three months ended June 30, 2025, was $10,865,545, representing a 22% increase compared to $8,931,517 in the same period of 2024[246]. - Commission and Distribution Income increased by $2,645,563, or 86%, compared to the previous year, driven by strategic marketing efforts and network expansion[248]. - Revenue from Insurance as a Service (IaaS) decreased by $711,535, or 12%, primarily due to the pause of the Guaranteed Asset Protection (GAP) product in the U.K.[248]. Customer Agreements and Market Presence - As of June 30, 2025, Roadzen had 34 insurance customer agreements, 78 automotive customer agreements, and approximately 3,800 agents and fleet customer agreements[220]. - Roadzen's operations are supported by a global network of partners, including leading insurance companies and automotive manufacturers[203]. - The company aims to expand into new markets and enhance its technology offerings to capture a greater share of the insurance value chain[221]. Technology and Innovation - Roadzen's technology enables customers to obtain a policy within seconds and process a claim estimate within minutes, significantly faster than traditional methods[208]. - Roadzen's investment in core technology and AI is crucial for maintaining competitive advantages and supporting growth in global markets[214]. - The company has received multiple industry accolades for its advancements in AI and technology, including being named 'World's Top InsurTech' by CNBC in 2024[205]. Financial Performance and Expenses - Total costs and expenses decreased by $25,939,923, or 66%, from $39,325,817 in 2024 to $13,385,894 in 2025[246]. - Research and development expenses decreased by $1,708,008, or 95%, primarily due to a decline in non-cash compensation expenses associated with RSU grants[251]. - General and administrative expenses declined by $23,248,291, or 90%, primarily driven by a reduction in non-cash RSU expenses and cost discipline efforts[253]. - Sales and marketing expenses increased by $329,713, or 6%, due to enhanced marketing efforts aimed at increasing distribution income[252]. - Depreciation and amortization decreased by $355,349, or 74%, compared to the same period in the prior year[254]. Cash Flow and Financial Position - Net cash used in operating activities decreased by $2.7 million to $(2,921,507) for the three months ended June 30, 2025, compared to $(5,621,361) for the same period last year[266]. - Cash provided by financing activities was $1.4 million for the three months ended June 30, 2025, primarily from the issuance of ordinary shares[271]. - The accumulated deficit increased to $228.4 million as of June 30, 2025, up from $224.3 million the previous year, primarily due to substantial operating losses[262]. - The company anticipates continued operating losses and negative cash flows, necessitating additional capital resources to support strategic initiatives[262]. Debt and Financing - The company entered into a Note Purchase Agreement with Mizuho for $7,500,000 in senior secured notes, bearing an interest rate of 15% per annum, which increases by 5% upon certain prepayment events[278]. - The company has a cash reserve requirement of at least $1 million as part of the covenants in the Note Purchase Agreement[280]. - The December 2023 Convertible Debentures allow the company to issue up to $50 million, with an initial closing of $400,000 and a conversion price of $10.00 per share[286][287]. - The March 2024 SPA Notes bear interest at 17.5% per annum and mature six months after funding, with a potential increase to 19.5% if not repaid by the Initial Rate Adjustment Date[292]. - The total short-term borrowings from others amount to $20,209,675 as of June 30, 2025[276]. Shareholder Information and Market Activity - Roadzen's ordinary shares began trading on the Nasdaq Global Market under the ticker symbol "RDZN" on September 21, 2023[24]. - The Company issued ordinary shares during the period, generating proceeds of $1,386,959[16]. - On July 24, 2025, the Company agreed to sell 1,803,134 Ordinary Shares at $1.25 per share, totaling approximately $2.25 million[301]. - The Company received gross proceeds of $2,249,999.70 from a Direct Offering of 1,730,769 Ordinary Shares at an offering price of $1.30 per share[304]. Accounting and Regulatory Matters - The Company is classified as an "emerging growth company," allowing it to delay the adoption of certain accounting standards[309]. - The Company has not identified any recently issued accounting standards that would materially affect its financial statements[312]. - The FASB issued ASU 2022-03, effective after December 15, 2024, impacting fair value measurement of equity securities[94]. - The FASB issued Accounting Standards Update 2023-09, effective for fiscal years beginning after December 15, 2024, focusing on income tax disclosures[95].
Roadzen (RDZN) - 2025 Q2 - Quarterly Report