Roadzen Strengthens Balance Sheet, Eliminates $5.5 Million in Short-Term Liabilities By Paying $1.65 million in Cash
Roadzen (NASDAQ: RDZN) has successfully eliminated $12.6 million in short-term liabilities over the past six months through strategic financial management. The company recently cleared $5.5 million in short-term payables for $1.65 million in cash, while additional debt reduction included $2.5 million in payables and $0.9 million in short-term debt exchanged for shares at $2.80 per share, plus $3.7 million in renegotiated expenses.
The company has also secured an agreement to extend its senior secured facility with Mizuho Securities USA through December 2025 and raised $7.88 million through equity offerings. These initiatives are part of Roadzen's strategy to achieve cash flow breakeven in 2025, which includes reducing expenses inherited from its September 2023 public listing and decreasing quarterly cash burn.
Roadzen (NASDAQ: RDZN) ha eliminato con successo $12,6 milioni di passività a breve termine negli ultimi sei mesi grazie a una gestione finanziaria strategica. Recentemente, l'azienda ha estinto $5,5 milioni di debiti a breve termine per $1,65 milioni in contante, mentre la riduzione del debito includeva $2,5 milioni in pagamenti e $0,9 milioni di debito a breve termine scambiati per azioni a $2,80 per azione, oltre a $3,7 milioni in spese rinegoziate.
L'azienda ha anche ottenuto un accordo per estendere la sua linea di credito senior garantita con Mizuho Securities USA fino a dicembre 2025 e ha raccolto $7,88 milioni tramite offerte di equity. Queste iniziative fanno parte della strategia di Roadzen per raggiungere il pareggio dei flussi di cassa entro il 2025, che include la riduzione delle spese ereditate dalla sua quotazione pubblica di settembre 2023 e la diminuzione del consumo di liquidità trimestrale.
Roadzen (NASDAQ: RDZN) ha eliminado con éxito $12.6 millones en pasivos a corto plazo en los últimos seis meses mediante una gestión financiera estratégica. Recientemente, la compañía canceló $5.5 millones en cuentas por pagar a corto plazo por $1.65 millones en efectivo, mientras que la reducción de deuda adicional incluía $2.5 millones en cuentas por pagar y $0.9 millones en deuda a corto plazo cambiados por acciones a $2.80 por acción, además de $3.7 millones en gastos renegociados.
La compañía también ha asegurado un acuerdo para extender su línea de crédito garantizada senior con Mizuho Securities USA hasta diciembre de 2025 y ha recaudado $7.88 millones a través de ofertas de acciones. Estas iniciativas son parte de la estrategia de Roadzen para alcanzar el equilibrio de flujo de efectivo en 2025, que incluye la reducción de gastos heredados de su salida a bolsa en septiembre de 2023 y la disminución de la quema de efectivo trimestral.
로드젠 (NASDAQ: RDZN)은 지난 6개월간 전략적 재무 관리를 통해 단기 부채 $1260만 달러를 성공적으로 감축했습니다. 회사는 최근 $165만 달러의 현금으로 $550만 달러의 단기 지불금을 청산했으며, 추가적인 부채 감소는 $250만 달러의 지불금과 주당 $2.80의 주식으로 교환한 $90만 달러의 단기 부채를 포함하며, $370만 달러의 재협상된 비용도 포함됩니다.
회사는 또한 미즈호 증권 미국 지사와 함께 2025년 12월까지 우선 보장된 대출 시설 연장 계약을 체결하고, 주식 공모를 통해 $788만 달러를 모금했습니다. 이러한 이니셔티브는 로드젠이 2025년까지 현금 흐름 수익성을 달성하기 위한 전략의 일환으로, 2023년 9월 상장에서 물려받은 비용 절감과 분기별 현금 소모 감소를 포함합니다.
Roadzen (NASDAQ: RDZN) a réussi à éliminer 12,6 millions de dollars de dettes à court terme au cours des six derniers mois grâce à une gestion financière stratégique. L'entreprise a récemment apuré 5,5 millions de dollars de créances à court terme pour 1,65 million de dollars en liquidités, tandis que la réduction supplémentaire de la dette comprenait 2,5 millions de dollars de créances et 0,9 million de dollars de dette à court terme échangés contre des actions à 2,80 dollars par action, ainsi que 3,7 millions de dollars de dépenses renégociées.
L'entreprise a également conclu un accord pour prolonger sa ligne de crédit senior garantie avec Mizuho Securities USA jusqu'en décembre 2025 et a levé 7,88 millions de dollars grâce à des offres d'actions. Ces initiatives font partie de la stratégie de Roadzen pour atteindre l'équilibre des flux de trésorerie d'ici 2025, ce qui comprend la réduction des dépenses héritées de son introduction en bourse de septembre 2023 et la diminution de la consommation de liquidités trimestrielle.
Roadzen (NASDAQ: RDZN) hat in den letzten sechs Monaten erfolgreich 12,6 Millionen Dollar an kurzfristigen Verbindlichkeiten durch strategisches Finanzmanagement eliminiert. Das Unternehmen hat kürzlich 5,5 Millionen Dollar an kurzfristigen Verbindlichkeiten für 1,65 Millionen Dollar in bar getilgt, während die zusätzliche Schuldenreduzierung 2,5 Millionen Dollar an Verbindlichkeiten und 0,9 Millionen Dollar an kurzfristigen Schulden umfasste, die gegen Aktien zu einem Preis von 2,80 Dollar pro Aktie getauscht wurden, sowie 3,7 Millionen Dollar an neu verhandelten Ausgaben.
Das Unternehmen hat außerdem eine Vereinbarung zur Verlängerung seiner besicherten Kreditlinie mit Mizuho Securities USA bis Dezember 2025 gesichert und 7,88 Millionen Dollar durch Aktienangebote gesammelt. Diese Initiativen sind Teil der Strategie von Roadzen, bis 2025 die Gewinnschwelle bei den Cashflows zu erreichen, die auch die Reduzierung von vererbten Ausgaben aus seinem Börsengang im September 2023 und die Verringerung des quartalsweisen Bargeldverbrauchs umfasst.
- Eliminated $12.6M in short-term liabilities for only $1.65M cash and 1.2M shares
- Secured one-year extension of senior secured facility through December 2025
- Raised $7.88M through equity public offerings
- Reduced nearly half of expenses inherited from going public
- Achieved sequential reduction in cash burn over last three quarters
- Issued approximately 1.2M new shares causing dilution
- Still operating at a cash burn rate
- Required to raise additional $7.88M through equity offerings
Insights
The strategic financial restructuring executed by Roadzen represents a masterclass in balance sheet optimization, achieving $12.6 million in liability reduction through a remarkably efficient combination of cash and equity settlements. The headline $5.5 million liability elimination for just $1.65 million cash represents a
The company's multi-faceted approach to financial strengthening is particularly noteworthy:
- Liability settlements at significant discounts preserve cash while cleaning the balance sheet
- Strategic share issuance at
$2.80 per share for debt conversion, notably above current market price - Successful
$7.88 million equity raise providing growth capital - One-year extension of the Mizuho facility reducing refinancing pressure
The systematic reduction in operating costs inherited from the SPAC transaction, combined with declining cash burn over three consecutive quarters, signals disciplined financial management. While the equity-based settlements introduce some dilution, the trade-off appears favorable given the substantial liability reduction and improved financial flexibility.
The path to cash flow breakeven in 2025 appears increasingly credible, supported by revenue growth, cost optimization and a strengthened balance sheet. This financial restructuring positions Roadzen to focus on core growth initiatives in AI-driven insurance technology, with reduced balance sheet constraints and improved operational efficiency.
Roadzen has eliminated a total of
NEW YORK, Feb. 04, 2025 (GLOBE NEWSWIRE) -- Roadzen Inc. (Nasdaq: RDZN) (“Roadzen” or the “Company”), a global leader in AI at the intersection of insurance and mobility, announced today that it eliminated
In July 2024, Roadzen launched a key initiative to strengthen its balance sheet, primarily by renegotiating and reducing payables associated with the going-public transaction and short-term debt. To date, the Company has improved its balance sheet as follows:
- Total Short-Term Liabilities Eliminated since Summer of 2024:
$12.6 million $5.5 million : Eliminated through a cash payment of$1.65 million (announced today).$2.5 million : Payables exchanged for shares at$2.80 per share (by an entity controlled by the Chairman, as previously announced).$0.9 million : Short-term debt exchanged for shares at$2.80 per share (by an entity controlled by the CEO, as previously announced).$3.7 million : Various accrued expenses renegotiated and released in quarter ended September 30, 2024.
Additionally, the Company also completed the following:
- Senior Secured Facility Extension: Agreement in principle reached with Mizuho Securities USA Inc. to extend the debt facility by one year, through December 31, 2025.
- Equity Financing: Raised
$7.88 million in straight equity public offerings during December and January, as previously announced.
Commenting on the Company’s progress in strengthening its balance sheet, Rohan Malhotra, Roadzen’s Founder and CEO, said, “Right-sizing Roadzen’s balance sheet and reducing global operating costs has been one of our core initiatives over the past six months. We have made significant progress towards both objectives by cutting nearly half of the expenses inherited when we went public in September 2023 and, sequentially reducing our cash burn over the last three quarters. In addition to cleaning up payables, agreeing in principle to extend our senior secured facility by a year, and raising approximately
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 anticipated benefits of our products and solutions, our expected revenue growth, 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 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: Sanya Soni sanya@roadzen.ai or media@roadzen.ai
FAQ
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