- Zoomcar has terminated its co-founder Greg Moran as CEO following a disastrous Nasdaq debut that resulted in a 98% loss of the company's value.
- Amidst leadership changes, Zoomcar secures a new $3 million investment even as the company faces regulatory scrutiny.
Bengaluru-based car rental company, Zoomcar announced in a regulatory filing that its co-founder, Greg Moran, has been removed as CEO after serving for 12 years. Hiroshi Nishijima, the company’s COO, has been named the interim CEO by the board.
"On June 20, 2024, Greg Moran, the company’s chief executive officer, was terminated from his role. Pursuant to Moran’s employment agreement, Moran is required to resign from the Board of Directors of the company as a result of such termination," read SEC filings as of June 21.
Moran’s resignation followed a catastrophic Nasdaq debut that wiped out 98% of the company’s value in just six months. In fact, reports suggest that the firm has been under regulatory review regarding the market pricing of its Nasdaq shares and its revenue forecasts.
SEC filings from February 5 revealed that the regulator requested more information about the company's revenue forecasts. The filings pointed out that while financial advisors projected 2023 revenues to be $21.6 million in their business combination evaluation, the company's actual revenues for the year ending March 31, 2023, were only $8. 8 million.
“This week marked the end of a decade plus long journey at the helm building Zoomcar. I couldn't be more proud of what we've built in India and beyond as we introduced the power of car sharing to millions of new consumers across countless cities,” wrote Moran in a LinkedIn post.
Additionally, the departure of Moran coincided with Zoomcar receiving a new $3 million investment. The app-based peer-to-peer car rental marketplace secured this funding from institutional investors.
Edited by Harshajit Sarmah
