Roadzen Announces Pricing of $2.25 Million Registered Direct Offering of Ordinary Shares

Rhea-AI Summary

Roadzen (NASDAQ:RDZN), an AI company focused on insurance and mobility, has announced a $2.25 million registered direct offering of ordinary shares. The company will sell 1,730,769 shares at $1.30 per share to an institutional investor.

The offering, expected to close around July 29, 2025, is being conducted through Maxim Group LLC as the sole placement agent. The securities are being offered under an effective S-3 shelf registration statement, with a prospectus supplement to be filed with the SEC.

Positive

• Secured $2.25 million in additional funding through registered direct offering
• Transaction with institutional investor indicates professional investor interest
• Offering conducted through established shelf registration, streamlining the process

Negative

• Offering price of $1.30 per share may represent a discount to market price
• Share dilution of approximately 1.73 million new shares
• Small offering size might indicate limited investor interest or immediate capital needs

Insights

Financial Analyst

Roadzen raises $2.25M through share offering at $1.30/share, indicating cash needs despite potential dilution concerns.

Roadzen's $2.25 million registered direct offering reveals important insights about the company's current financial position. The offering price of $1.30 per share for 1,730,769 ordinary shares suggests the AI insurance company is seeking immediate capital infusion, likely to fund operations or strategic initiatives in the AI-powered insurance and mobility space.

This capital raise warrants attention for several reasons. First, the relatively modest size of the offering ($2.25 million) indicates this is more of a short-term funding solution rather than a major strategic financing round. Second, the involvement of an institutional investor suggests some confidence in Roadzen's business model, despite any market challenges the company may be facing.

The timing and structure of this offering—coming through a shelf registration that was declared effective in November 2024—demonstrates Roadzen's preparation for flexible capital access. However, existing shareholders should consider the dilutive impact of these new shares entering the market. The use of a registered direct offering, which is faster and typically less expensive than other public offering methods, suggests some urgency in securing these funds.

Without specific details on how Roadzen plans to deploy this capital, investors should monitor upcoming communications for clarity on whether these funds will support R&D, market expansion, or simply strengthen the balance sheet. The participation of Maxim Group as the sole placement agent adds institutional credibility to the transaction, though the relatively small offering size may reflect current market conditions or investor sentiment toward the AI insurance sector.

NEW YORK, July 28, 2025 (GLOBE NEWSWIRE) -- Roadzen Inc. (Nasdaq: RDZN) (“Roadzen” or the “Company”), a global leader in AI at the convergence of insurance and mobility, today announced that it has entered into a securities purchase agreement with an institutional investor for the purchase and sale of 1,730,769 ordinary shares at an offering price of $1.30 per share, in a registered direct offering (the “Offering”).

The gross proceeds to the Company from the Offering are estimated to be approximately $2.25 million before deducting the placement agent’s fees and other estimated offering expenses. The offering is expected to close on or about July 29, 2025, subject to the satisfaction of customary closing conditions.

Maxim Group LLC is acting as the sole placement agent in connection with the Offering.

The securities are being offered pursuant to a shelf registration statement on Form S-3 (File No. 333-282966), which was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on November 12, 2024. The offering will be made only by means of a prospectus supplement and the accompanying prospectus that form a part of such registration statement. A prospectus supplement relating to the Offering will be filed by the Company with the SEC. When available, copies of the prospectus supplement and accompanying prospectus can be obtained at the SEC's website at www.sec.gov or from Maxim Group LLC, 300 Park Avenue, New York, NY 10022, Attention: Syndicate Department, via email at syndicate@maximgrp.com, or telephone at (212) 895-3500.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sales of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

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 308 employees across its global offices in the U.S., U.K. and India. 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 our anticipated future financial results (including ability to achieve breakeven Adjusted EBITDA), the anticipated closing of our registered direct offering, the anticipated benefits of our products and solutions, 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 June 26, 2025. 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.

Investor Contact:
IR@roadzen.ai

Media Contact:
Sanya Soni – sanya@roadzen.ai | media@roadzen.ai

FAQ

What is the size and price of Roadzen's (RDZN) July 2025 offering?

Roadzen is offering 1,730,769 ordinary shares at $1.30 per share, for total gross proceeds of $2.25 million before deducting fees and expenses.

When will Roadzen's (RDZN) registered direct offering close?

The offering is expected to close on or about July 29, 2025, subject to customary closing conditions.

Who is the placement agent for Roadzen's (RDZN) offering?

Maxim Group LLC is acting as the sole placement agent for the offering.

How will Roadzen (RDZN) use the proceeds from the offering?

The press release does not specify the use of proceeds from the $2.25 million offering.

What type of registration is Roadzen (RDZN) using for this offering?

The offering is being conducted under an effective shelf registration statement on Form S-3 (File No. 333-282966), which was declared effective by the SEC on November 12, 2024.