🚗 Zoomcar Cuts Losses But Revenue Stalls

🍵 Good Morning and Happy Tuesday!

Welcome to the first day of July! Whether you're crushing Q2 goals or just figuring out what day it is (it's Tuesday, we checked), Masala Chai's got your back with today’s biggest business brews.

Let’s pour it up ☕

☕ Chai Shots

• 📉 Zoomcar trims losses but loses revenue momentum: The self-drive car rental startup cut FY25 losses by 25% to $25.6M, thanks to a 53% reduction in expenses. But revenue dipped 8% to $9.1M. More in the Big Brew 👇

• ⛔ India extends import restrictions on key raw materials: Restrictions on low-ash metallurgical coke and minimum import prices for soda ash have been extended till Dec 31, impacting steel and glass industries.

• 🛒 Jumbotail becomes unicorn with $120M funding: The B2B grocery platform raised Series D led by SC Ventures and acquired Solv India, now servicing 5 lakh kirana stores in 400+ towns.

• 📦 Amazon invites public into its warehouses: Launching free fulfilment centre tours in Delhi and Bengaluru later this year, Amazon will offer a behind-the-scenes peek into how packages are picked, packed, and shipped.

📈 Market Masala

• 💸 Markets fall after 4-day rally: Sensex dropped 452 points to 83,606 and Nifty 50 slid 121 points to 25,517 due to profit booking in heavyweights like Reliance and HDFC Bank.

• 💹 Mid and small-caps buck the trend: While benchmarks dipped, BSE Midcap rose 0.67% and Smallcap climbed 0.81%, boosting market cap by ₹1 lakh crore to ₹461 lakh crore.

• 📊 June was a good month for investors: Nifty gained 3% in June and is up 7.5% YTD in 2025. Analysts expect sideways movement unless Nifty crosses 25,800.

• 🤝 Hindustan Copper and Coal India explore critical minerals tie-up: The two PSUs signed a non-binding MoU to jointly assess copper and critical mineral ventures. Hindustan Copper’s FY25 profit soared 54% to ₹633 crore.

🌐 Global Masala

• 🐟 China lifts most of its seafood ban on Japan: After months of trade tensions post-Fukushima wastewater release, China eased restrictions citing clean test results.

• 🛢️ Gas prices rise on Middle East tensions: The Israel-Iran conflict pushed oil prices higher, prompting India to raise domestic gas rates to $6.75/unit from July 1, impacting CNG margins but sparing fertiliser firms due to subsidies.

☕ The Big Brew: 🚘 Zoomcar Slows Its Burn, But Hits a Revenue Speed Bump

Zoomcar's FY25 net loss fell 25% to $25.6M after slashing expenses by over 50%, but revenue declined 8% to $9.1M, showing topline challenges.

• 📆 More bookings, less revenue per user: Bookings grew 10% to 4.3 lakh, but each user is generating less revenue, pointing to monetisation struggles.

• 🔄 Operational metrics show mixed signals: Adjusted EBITDA losses narrowed 44% to $9.9M, suggesting better cost control, but growth remains flat.

• 🚨 Efficiency up, acceleration missing: Despite trimming losses and costs, Zoomcar's inability to increase revenue raises concerns over its scalability.

📄 What does this mean?

Zoomcar’s operational tightening shows promise—it’s spending less and losing less—but unless it figures out how to make more money from each booking or unlock new revenue streams, its road to profitability remains long and winding. In India’s price-sensitive market, finding the right monetisation formula is key to staying in the driver’s seat.

🌟 Startup Scoop

• 💎 Aukera raises $15M to redefine modern jewellery: Bengaluru’s lab-grown diamond brand backed by Peak XV and Fireside Ventures is expanding from 13 stores, aiming to dominate India’s luxury space.

• 🧠 LogicFlo AI lands $2.7M to automate pharma workflows: The US-based life sciences AI startup raised seed funding from Lightspeed to expand its intelligent agents that reduce compliance work from weeks to minutes.

🔢 What’s Brewing Next?

• 🧱 India extends import rules on key materials: Restrictions on metallurgical coke and soda ash remain until Dec 31, affecting steel, detergent, and glass sectors.

🎮 Chai Break Trivia

🌟 What do Amazon's Bengaluru FC and 800 Olympic swimming pools have in common?

They both represent Amazon's warehouse capacity! The Bengaluru fulfilment centre boasts over 2 million cubic feet of storage — equal to 800 Olympic-sized pools!

See you tomorrow with more shots, scoops, and surprises!. Happy Tuesday!

— Team Masala Chai ☕