Zoomcar's OTCQX Debut: A Strategic Move for Growth and Investor Access

The OTC Markets Group’s recent addition of Zoomcar Holdings, Inc. (ZCAR) to the OTCQX Best Market marks a pivotal moment for the electric vehicle (EV) car-sharing startup. By accessing this tiered, regulated over-the-counter marketplace, Zoomcar gains visibility among institutional and retail investors, signaling its transition from a niche player to a publicly tracked entity. This move aligns with the company’s aggressive expansion plans in urban EV mobility, a sector projected to grow at a 20% compound annual rate through 2030.

The Reverse Stock Split: Positioning for Liquidity
Central to Zoomcar’s OTCQX listing is its March 2025 reverse stock split—a 1-for-20 adjustment aimed at boosting its stock price to meet minimum listing requirements. While such splits often signal financial strain, Zoomcar’s decision appears strategic. The move elevated its post-split price from pennies to a more institutional-friendly range, enabling smoother trading and attracting larger investors. Crucially, the ticker symbol ZCAR remains unchanged, preserving investor familiarity.

Early data shows the stock has risen 15% since the split, outperforming broader EV indices by 8 percentage points—a positive sign for short-term momentum.

Financials and Institutional Appetite
Zoomcar’s Q1 2025 results revealed a 40% year-over-year revenue jump to $220 million, driven by partnerships with tech firms like Google and Microsoft for corporate mobility solutions. However, net losses widened to $35 million due to infrastructure investments. This raises questions about profitability timelines but underscores the company’s long-term vision.

Institutional investors are taking note. Insider transactions signal confidence: Mark F. Bailey, Zoomcar’s CEO, purchased 184,112 shares post-split—a move that could stabilize sentiment. Conversely, Jane Street Group’s exit from its holdings hints at differing valuation opinions.

At a P/S ratio of 2.1x versus industry averages of 3.5x, Zoomcar trades at a discount, potentially reflecting its unproven profit model.

The EV Car-Sharing Opportunity
Zoomcar’s core business—EV car-sharing in cities—aligns with global trends. A shows a 22% CAGR, driven by urbanization and sustainability mandates. Zoomcar’s fleet of 12,000 EVs in 50 cities positions it to capture this demand, especially as traditional automakers pivot to subscription models.

Risks and Challenges
Despite its potential, Zoomcar faces hurdles. Its reliance on government EV subsidies and charging infrastructure investments creates regulatory risks. Competitors like Zipcar and Better have deeper capital reserves, while Tesla’s entry into car-sharing could intensify price wars. Additionally, the OTCQX market’s lower liquidity compared to major exchanges may limit large-scale institutional adoption.

Conclusion: A High-Reward, High-Risk Bet
Zoomcar’s OTCQX listing is a bold step that balances ambition with execution risks. Its discounted valuation, strong revenue growth, and insider confidence suggest upside for risk-tolerant investors. However, the company must prove it can scale profitability while navigating a crowded EV landscape.

At 2.1x P/S, Zoomcar’s stock offers a valuation edge over peers trading at 3.0x or higher. If it achieves operational efficiencies, this could be a turning point. For now, the bet on Zoomcar is a bet on urban EV adoption—where the rewards are vast, but the path remains uncertain.

Investors should monitor its Q3 results for margin improvements and fleet expansion metrics. With the EV car-sharing market on the rise, Zoomcar’s story is one to watch closely.