NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Roadzen Inc. (Nasdaq: RDZN) ("Roadzen" or the "Company"), a global leader in AI at the intersection of insurance and mobility, announced today that it eliminated $5.5 million in short-term payables in exchange for $1.65 million in cash.
In July 2024, Roadzen launched a key initiative to strengthen its balance sheet, primarily by renegotiating and reducing payables associated with the going-public transaction and short-term debt. To date, the Company has improved its balance sheet as follows:
- Total Short-Term Liabilities Eliminated since Summer of 2024: $12.6 million
- $5.5 million: Eliminated through a cash payment of $1.65 million (announced today).
- $2.5 million: Payables exchanged for shares at $2.80 per share (by an entity controlled by the Chairman, as previously announced).
- $0.9 million: Short-term debt exchanged for shares at $2.80 per share (by an entity controlled by the CEO, as previously announced).
- $3.7 million: Various accrued expenses renegotiated and released in quarter ended September 30, 2024.
Additionally, the Company also completed the following:
- Senior Secured Facility Extension: Agreement in principle reached with Mizuho Securities USA Inc. to extend the debt facility by one year, through December 31, 2025.
- Equity Financing: Raised $7.88 million in straight equity public offerings during December and January, as previously announced.
Commenting on the Company's progress in strengthening its balance sheet, Rohan Malhotra, Roadzen's Founder and CEO, said, "Right-sizing Roadzen's balance sheet and reducing global operating costs has been one of our core initiatives over the past six months. We have made significant progress towards both objectives by cutting nearly half of the expenses inherited when we went public in September 2023 and, sequentially reducing our cash burn over the last three quarters. In addition to cleaning up payables, agreeing in principle to extend our senior secured facility by a year, and raising approximately $8 million in straight equity over the last month are examples of the meaningful strides we have made to position Roadzen for future growth. Our fortified balance sheet and continued revenue growth, combined with several new partnerships and clients announced over the last quarter, further strengthen our path to achieving cash flow breakeven in 2025."
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 360 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," "estimate," and "continue," or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding the anticipated benefits of our products and solutions, our expected revenue growth, 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 annual report on Form 10-K we filed with the SEC on July 1, 2024. 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.
For more information, please contact:
Investor Contacts: IR@roadzen.ai
Media Contacts: Sanya Soni sanya@roadzen.ai or media@roadzen.ai
