Zoomcar Holdings, Inc. announced a private placement of $3.6 million on June 20, 2024. The company has issued senior unsecured non-convertible promissory notes and investor warrants for expected gross proceeds of $3 million in the transaction. The transaction included participation from an institutional investors.

The note carries a 15% interest rate per annum. The notes will mature on the earlier of nine months after issuance or the closing of capital raises or sales of assets of the company with net proceeds sufficient to repay the notes. The company incurred an original issue discount of approximately 16.67%.

At the time of event of default, the interest accrues 20% per year.