Roadzen’s Insiders and Major Shareholders Agree to Extend Lock-Up for an Additional Year

Rhea-AI Summary

Roadzen Inc. (Nasdaq: RDZN), an AI-driven insurance and mobility company, has announced that its major shareholders and insiders have agreed to extend their lock-up agreements by 12 months, until September 20, 2025. This extension applies to shareholders owning over 56 million shares, representing those with more than 5% ownership, holders of a majority of shares held by other shareholders, and all company insiders.

CEO Rohan Malhotra expressed gratitude for shareholder support, emphasizing that this extension allows time to build the company's fundamental business. Roadzen is positioned as one of the few publicly traded, AI-first technology companies with over $50 million in revenue in the last twelve months. The company is focusing on profitability and has undertaken measures to restructure its balance sheet. Malhotra highlighted Roadzen's potential in the $800 billion auto insurance market and reaffirmed the company's mission to deliver the best insurance experience globally while generating strong returns for shareholders.

Positive

• Major shareholders and insiders agreed to extend lock-up agreements by 12 months, showing confidence in the company
• Roadzen has generated over $50 million in revenue in the last twelve months
• The company is focusing on profitability and has restructured its balance sheet
• Roadzen is positioned in the large $800 billion auto insurance market

Negative

• Original lock-up agreements were set to expire, potentially causing concern about stock dilution

News Market Reaction

+4.44%

1 alert

+4.44% News Effect

On the day this news was published, RDZN gained 4.44%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

NEW YORK, Sept. 24, 2024 (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 all its major shareholders known to own more than 5% of the Company’s common stock, holders of a majority of its shares held by other shareholders and all company insiders have agreed to extend their lock-up agreements by another twelve months, to September 20, 2025. This represents shareholders owning over 56 million shares that were originally scheduled to be released from lock-up on September 20, 2024, pursuant to the lock-up agreements entered into in connection with the Company’s initial business combination.

"We are grateful for the continued support of our shareholders. This extension allows us time to build our fundamental business, which remains tremendously exciting. Roadzen is among a handful of publicly traded, AI-first technology companies that have delivered more than $50 million in revenue over the last twelve months, driven by robust growth in a large legacy industry. Coupled with the measures we have undertaken to focus on leading the Company towards profitability, along with restructuring our balance sheet, we are confident in being able to deliver strong returns for our shareholders,” commented Rohan Malhotra, Roadzen’s founder and CEO.

“The unanimous vote of confidence from our major shareholders also allows us to continue building a global leader in the $800 billion auto insurance market without getting sidetracked by short-term pressures. I am delighted by the outcome, and we remain resolute in our mission to deliver the best insurance experience to every driver in the world while generating strong returns for our shareholders.”

For more information about Roadzen Inc., please visit https://roadzen.ai

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 380+ 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,” “expected,” “committed,” “plan,” “anticipate,” “believe,” “pipeline,” “leads,” “estimate,” and “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements regarding our strategy, demand for our products, expansion plans, future operations, future operating results (including expectations regarding future profitability and returns to shareholders), planned balance sheet restructuring, estimated revenues (including from new contracts and joint ventures), 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:
Roadzen: Sanya Soni sanya@roadzen.ai or media@roadzen.ai
Gutenberg: roadzen@thegutenberg.com

FAQ

What is the new lock-up expiration date for Roadzen (RDZN) major shareholders and insiders?

The new lock-up expiration date for Roadzen (RDZN) major shareholders and insiders is September 20, 2025, extended by 12 months from the original date of September 20, 2024.

How much revenue has Roadzen (RDZN) generated in the last twelve months?

Roadzen (RDZN) has generated over $50 million in revenue in the last twelve months, according to the press release.

What is the size of the auto insurance market that Roadzen (RDZN) is targeting?

Roadzen (RDZN) is targeting the $800 billion auto insurance market, as mentioned in the press release.

Who is the CEO of Roadzen (RDZN)?

The CEO of Roadzen (RDZN) is Rohan Malhotra, who is also the founder of the company.