Roadzen Completes First Close of Its India Subsidiary Financing and Upsizes Round to $7 Million Due to Strong Investor Demand

Rhea-AI Summary

Roadzen Inc. (Nasdaq: RDZN), an AI-focused auto insurance technology company, has successfully completed the first close of its India subsidiary financing, raising $4.5 million at an $84 million pre-money valuation. Due to strong investor demand, the round has been upsized to $7 million, with a second close expected soon.

The financing values Roadzen's India subsidiary at nearly 25% above the parent company's current Nasdaq market cap, implying a ~$2.00 per share price for Roadzen's listed shares. Key investors include Quant AMC, Team India, Valentis Advisors, and Prime Securities Group. The company expects to achieve Adjusted EBITDA breakeven by Q4 2025, having secured over $11 million this quarter at premiums to market cap.

Positive

• Subsidiary valuation implies 25% premium to parent company's market cap
• Successfully raised $4.5M with round upsized to $7M due to strong demand
• Secured over $11M in funding this quarter at premiums to market cap
• Expected to achieve Adjusted EBITDA breakeven by Q4 2025
• Backing from prominent Indian asset managers

Negative

• Current market capitalization of parent company trades below subsidiary value
• Additional funding rounds may lead to future shareholder dilution

Insights

Financial Analyst

Roadzen secures significant funding at premium valuation, strengthening financial position while limiting shareholder dilution.

Roadzen's India subsidiary financing provides a substantial capital injection that directly addresses the company's financial runway. The first close of $4.5 million at an $84 million pre-money valuation—coupled with the upsizing to $7 million due to investor demand—represents a significant vote of confidence in Roadzen's India operations.

What's particularly noteworthy is the implied valuation gap: the India subsidiary alone is being valued at nearly 25% above the entire Nasdaq-listed parent company's current market capitalization. This suggests the market may be significantly undervaluing Roadzen's consolidated operations, with the implied fair value of approximately $2.00 per share representing a substantial premium to current trading prices.

The financing structure is strategically designed to minimize dilution while maximizing capital raised. Management indicates they've secured over $11 million this quarter at premiums to market cap, which strengthens their balance sheet without proportionally diluting existing shareholders. This approach demonstrates financial discipline and shareholder-friendly capital allocation.

The projection of reaching Adjusted EBITDA breakeven by Q4 2025 provides a clear financial milestone and suggests the company is prioritizing operational efficiency alongside growth. This financing effectively extends their runway to that critical inflection point, after which cash burn should theoretically cease and the business model can demonstrate sustainability.

The caliber of investors—established Indian asset managers including Quant AMC, Team India, Valentis Advisors, and Prime Securities Group—adds further credibility to the transaction. Their participation suggests institutional confidence in Roadzen's AI-driven insurance technology platform and its market potential in the Indian insurance sector.

NEW YORK, Sept. 16, 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 successful first close of its previously-announced India subsidiary financing, raising $4.5 million at a pre-money valuation of the subsidiary of $84 million. Due to strong investor demand, the raise has been upsized to approximately $7 million, with a second close expected shortly.

The financing establishes a standalone valuation for Roadzen’s India business at nearly 25% above the Nasdaq-listed parent Company’s current market capitalization. The subsidiary’s valuation implies a ~$2.00 per share price for Roadzen’s Nasdaq-listed shares. The first close was anchored by some of India’s leading asset managers, including Quant AMC, Team India, Valentis Advisors, and Prime Securities Group.

Rohan Malhotra, Founder and CEO of Roadzen, commented, “Our operations are now fully funded to achieve Adjusted EBITDA breakeven, which we expect to deliver by the final quarter of 2025. Importantly, with this raise, we will have secured more than $11 million this quarter – all at premiums to market cap, with incredible long-term investors, while limiting dilution for shareholders. This positions us to scale aggressively, accelerate innovation across our full-stack AI platform and deliver growth not just in India, but globally.”

Prime Securities Limited acted as the exclusive investment bank on the transaction.

Disclaimer: This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.

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 323 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 the additional closings of the financing described above, anticipated benefits of our products and solutions, business growth in the U.S., U.K. and India, anticipated , 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.

For more information, please contact:
Investor Contacts: IR@roadzen.ai
Media Contacts: Sanya Soni sanya@roadzen.ai or media@roadzen.ai

FAQ

What is the valuation of Roadzen's India subsidiary in the new financing round?

Roadzen's India subsidiary is valued at $84 million pre-money, which is approximately 25% above the Nasdaq-listed parent company's current market capitalization.

How much funding did Roadzen (RDZN) raise in its India subsidiary financing?

Roadzen initially raised $4.5 million in the first close and has upsized the round to $7 million due to strong investor demand, with a second close expected shortly.

When does Roadzen expect to achieve Adjusted EBITDA breakeven?

Roadzen expects to achieve Adjusted EBITDA breakeven by the final quarter of 2025.

Who are the key investors in Roadzen's India subsidiary financing?

The financing was anchored by leading Indian asset managers including Quant AMC, Team India, Valentis Advisors, and Prime Securities Group.

What is the implied share price for Roadzen's Nasdaq-listed shares based on the subsidiary valuation?

The subsidiary's valuation implies a share price of approximately $2.00 for Roadzen's Nasdaq-listed shares.