Roadzen Inc. Announces Closing of Public Offering

Rhea-AI Summary

Roadzen Inc. (Nasdaq: RDZN) has completed its previously announced public offering of 2,222,300 ordinary shares at $2.25 per share, raising gross proceeds of $5,000,175 before deducting placement agent fees and expenses. The offering was conducted on a best efforts basis with ThinkEquity serving as the exclusive placement agent.

The company plans to utilize the net proceeds for sales and marketing costs, research and development, working capital, and general corporate purposes, including personnel costs and public company operating expenses. A portion may be allocated to repay outstanding debt. The offering was made under a shelf registration statement on Form S-3 that became effective on November 12, 2024.

Positive

• Secured $5 million in gross proceeds through public offering
• Funds allocated for sales, marketing, and R&D expansion
• Potential debt reduction improving balance sheet

Negative

• Dilution of existing shareholders through new share issuance
• Share offering priced at relatively low $2.25 per share

Insights

Financial Analyst

The $5 million public offering by Roadzen at $2.25 per share represents a significant capital raise for this small-cap AI insurance technology company. The pricing indicates a 25% discount to recent trading levels, suggesting challenging market conditions for the raise. The dilutive impact is notable, with 2.22 million new shares being issued, representing approximately 10% of the company's market cap. The stated use of proceeds focuses on core business growth drivers including sales, marketing and R&D, though the mention of potential debt repayment could signal some balance sheet pressure. The best-efforts basis of the offering, rather than a firm commitment, reflects the current cautious environment for small-cap technology fundraising. The completion of this offering provides essential working capital but comes at a meaningful cost to existing shareholders.

Tech Industry Analyst

The capital injection comes at a important time for Roadzen as the AI-powered insurance technology sector faces increasing competition and demand for innovation. The allocation of funds to R&D suggests a strategic focus on maintaining technological leadership in the convergence of AI, insurance and mobility - a rapidly evolving space where staying ahead requires constant innovation. Working capital deployment toward sales and marketing indicates a push for market expansion, likely to capitalize on the growing demand for AI-driven insurance solutions. The public company operating costs mentioned in the use of proceeds highlight the additional overhead burden of maintaining NASDAQ listing compliance. For a company in the emerging insurtech space, this balance between innovation investment and operational costs will be critical for long-term competitive positioning.

NEW YORK, Jan. 06, 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 the closing of its previously announced public offering of 2,222,300 ordinary shares (the “Offering”) on a best efforts basis at a public offering price of $2.25 per share, for gross proceeds of $5,000,175, before deducting placement agent discounts, commissions and Offering expenses. All of the ordinary shares were sold by the Company.

The Company intends to use the net proceeds from the Offering primarily for costs directly related to sales and marketing, for research and development, working capital and general corporate purposes, including personnel costs, capital expenditure and the costs of operating as a public company. The Company may also use a portion of the net proceeds to repay indebtedness outstanding.

ThinkEquity acted as the exclusive placement agent for the offering.

The Offering was made pursuant to a shelf registration statement on Form S-3 (File No. 333-282966), including a base prospectus, filed with the U.S. Securities and Exchange Commission (the “SEC”) on November 1, 2024 and declared effective on November 12, 2024. The final prospectus supplement relating to the Offering was filed with the SEC on January 3, 2025 and is available on the SEC’s website at http://www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the Offering may be obtained from ThinkEquity, 17 State Street, 41^st Floor, New York, New York 10004.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or 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 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 intended use of proceeds of the offering described above. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in “Risk Factors” in our SEC filings, including the annual report on Form 10-K we filed with the SEC on July 1, 2024, any subsequently filed quarterly reports and other documents we subsequently file with the SEC. 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:
Roadzen: Sanya Soni sanya@roadzen.ai or media@roadzen.ai
Gutenberg: roadzen@thegutenberg.com

FAQ

How much did Roadzen (RDZN) raise in its January 2025 public offering?

Roadzen raised $5,000,175 in gross proceeds through the public offering of 2,222,300 ordinary shares at $2.25 per share.

What is the purpose of Roadzen's (RDZN) January 2025 public offering?

The proceeds will be used for sales and marketing costs, research and development, working capital, general corporate purposes, and potentially repaying outstanding debt.

Who was the placement agent for Roadzen's (RDZN) January 2025 offering?

ThinkEquity acted as the exclusive placement agent for the offering.

When did Roadzen's (RDZN) shelf registration statement become effective?

Roadzen's shelf registration statement on Form S-3 became effective on November 12, 2024.

What was the price per share for Roadzen's (RDZN) January 2025 public offering?

The public offering price was $2.25 per ordinary share.