Roadzen Reports Strongest Quarter in Two Years with $14.4 Million Third Quarter Revenue and Sixth Consecutive Quarter of Adjusted EBITDA Improvement

Core Insights - Roadzen reported an 18.8% increase in revenue year-over-year, reaching $14.4 million in Q3 2025, and a record nine-month revenue of $38.9 million, up 18.3% from the previous year [5][11] - The company reduced its operating loss by 25.4% to $(2.4) million compared to the prior-year quarter, with adjusted EBITDA loss improving by 67.1% to $(0.59) million [5][11] - Roadzen's India subsidiary is valued at approximately $280 million following the acquisition of VehicleCare, which is expected to add around $10 million in high-margin revenue over the next year [14][6] Financial Performance - Q3 revenue increased by $2.3 million, or 18.8%, compared to the same quarter last year, and by approximately $0.7 million, or 4.9%, from Q2 [11][5] - Gross margin for Q3 improved to 63.7% from 55.7% in the previous quarter, while the nine-month gross margin rose to 59.5% from 54.6% year-over-year [11][5] - Total operating expenses for Q3 were approximately $16.7 million, reflecting the consolidation of the China joint venture [11] Strategic Acquisitions - Roadzen completed the acquisition of EliteCover, providing access to the $80 billion U.S. commercial auto insurance market, and signed an agreement to acquire VehicleCare, enhancing its full-stack motor claims capabilities [12][13][6] - The acquisition of VehicleCare will allow Roadzen to manage repair timelines and costs more effectively, achieving over 30% loss cost reduction compared to OEM garages [13][6] Market Position and Growth - Roadzen's AI platform processes over 3 million insurance claims annually, leveraging billions of real-world data points for high-precision decision-making in underwriting and claims automation [6][4] - The company has secured 61 insurance customer agreements and 87 automotive customer agreements, significantly increasing its client base from the previous year [11][5] - Roadzen's CEO highlighted the company's sustained business growth and expanding global customer adoption, emphasizing strong product-market fit across various regions [3][4]