ProStarM: project yearly rental of INR457.2m for 12 years

ProStarM: project yearly rental of INR457.2m for 12 years

Roadzen Inc. (Nasdaq: RDZN), a global leader in AI at the convergence of insurance and mobility, has announced a significant equity financing round for its India subsidiary. The company has received binding commitments for INR 40 crores (approximately $4.5 million) in equity financing, valuing the India subsidiary at approximately INR 740 crores or $84 million pre-money valuation [1].

The financing, anchored by marquee investors including leading family offices and institutional investors in India, values the India subsidiary at a 25% premium to the Nasdaq-listed parent company’s market capitalization. The proceeds are anticipated to accelerate India growth, drive technology acceleration for the global business, and reinforce Roadzen’s AI leadership, including DrivebuddyAI and core business lines, with a 50%+ revenue CAGR expected for the next three years in India [1].

This transaction provides growth capital while resulting in no dilution for shareholders in the Nasdaq-listed parent company. The contemplated dilution to the India subsidiary is approximately 5%, with the parent continuing to own approximately 95% of the India business. The transaction is expected to close on or about September 15, 2025 [1].

The financing attracted strong demand, exceeding initial raise targets. India is at the center of one of the most compelling global growth stories, with the country recently surpassing Japan to become the world’s fourth-largest economy and expected to double its GDP over the next decade. The auto insurance market in India, currently at just ~1% of GDP, has the potential to expand significantly as penetration rises and regulations like AIS-184 are expected to further accelerate adoption of advanced driver safety systems [1].

Rohan Malhotra, Founder and CEO of Roadzen, commented on the significance of this raise, stating, "India is an incredible growth story for Roadzen, and this raise sets a clear, independent benchmark for one of our most important markets. The India subsidiary’s valuation alone implies a benchmark of more than $2 per share for the global business, at which level we believe it still remains significantly undervalued compared to its peers" [1].

The gross proceeds to the India subsidiary from the financing are approximately INR 40 crores (~$4.5 million). Prime Securities Limited is acting as the exclusive Investment Bank in connection with the offering [1].

References:
[1] https://www.marketscreener.com/news/roadzen-inc-announces-strategic-equity-financing-of-approximately-4-5-million-for-its-india-subsid-ce7d59d8da8bf627