Roadzen Raises $2.25 Million in PIPE Financing at 20% Premium to Market to Advance Growth and Drive Operating Plan for FY25–26

Rhea-AI Summary

Roadzen (NASDAQ:RDZN), an AI company focused on insurance and mobility, has secured a $2.25 million PIPE financing at $1.25 per share, representing a 20% premium to recent trading prices. The funding comes from four of Roadzen's largest shareholders, demonstrating strong investor confidence in the company.

The proceeds will support working capital needs as Roadzen aims to achieve Adjusted EBITDA breakeven by December 2025. The company plans to scale DrivebuddyAI and expand sales in the U.S. and India. In a show of commitment, CEO Rohan Malhotra and the leadership team have deferred their RSU vesting until September 2026.

Positive

• PIPE financing secured at a 20% premium to market price, indicating strong investor confidence
• Investment backed by four largest shareholders, showing continued support
• Management aligned with shareholders through RSU vesting deferral to September 2026
• Company on track for Adjusted EBITDA breakeven by December 2025

Negative

• Additional share dilution through $2.25M PIPE financing
• Company still not EBITDA positive, requiring additional working capital

Insights

Financial Analyst

Roadzen's $2.25M premium-priced PIPE funding strengthens its path to profitability while demonstrating insider confidence despite undervaluation.

Roadzen's $2.25 million PIPE financing reveals several important dynamics about the company's current position. The 20% premium to market price is particularly noteworthy as it signals strong conviction from existing major shareholders during a period when the stock appears undervalued. This premium pricing stands in contrast to typical PIPE transactions, which often come at a discount.

The financing structure—targeted to just four major shareholders rather than a broader offering—accomplishes two strategic objectives: it minimizes dilution while strengthening the balance sheet with investor-aligned capital. Management's decision to defer RSU vesting until September 2026 further aligns leadership incentives with long-term performance rather than short-term stock movements.

From a cash flow perspective, this raise provides crucial working capital as Roadzen approaches its target of Adjusted EBITDA breakeven by December 2025. The funding will specifically support DrivebuddyAI deployment and market expansion in the U.S. and India—core growth initiatives that require upfront investment before yielding returns.

While $2.25 million is relatively modest compared to many technology financings, the timing, pricing, and investor composition make this more significant than the dollar amount alone would suggest. This transaction represents a strategic capital infusion that bridges the company to projected profitability while signaling insider confidence in Roadzen's long-term trajectory despite current market undervaluation.

PIPE Backed by Four of Roadzen’s Largest Shareholders, Signaling Strong Investor Conviction in the Company

Roadzen CEO and Leadership Team Defer RSU Vesting Until September 2026 in Show of Commitment to Long-Term Value Creation

NEW YORK, July 24, 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 it has signed agreements to complete a $2.25 million private placement of common stock at a price of $1.25 per share (the “PIPE”), representing approximately a 20% premium to the Company’s recent trading levels. The PIPE financing is being provided by four of Roadzen’s largest shareholders, underscoring their continued support and conviction in the Company’s execution. The shares issued in the PIPE will be restricted securities and subject to a six-month holding period under Rule 144 of the Securities Act.

“We’re building Roadzen for the long term, and this raise — led by some of our largest shareholders — reinforces that commitment,” said Rohan Malhotra, Founder and CEO of Roadzen. “These are patient, high-conviction investors who believe the Company is significantly undervalued and chose to invest at a premium to support our growth and strengthen the balance sheet. Their participation reflects confidence in our execution and the opportunities ahead, and we are thankful for their support. With this backing, we’re well-positioned to accelerate progress — from scaling DrivebuddyAI to expanding sales in the U.S. and India — and to stay on track toward Adjusted EBITDA breakeven by the December quarter.”

Malhotra added, “This raise is also a reflection of our disciplined capital strategy — we’ve kept the cap table tight, avoided broad-based dilution, and brought in aligned capital to fund this next leg of execution.”

Proceeds from the financing will be used to support Roadzen’s working capital towards achieving positive Adjusted EBITDA, including continued deployment of DrivebuddyAI, and driving growth across its key markets. The Company continues to target Adjusted EBITDA breakeven by the quarter ending December 2025.

As an additional show of alignment with shareholders, Roadzen’s CEO and leadership team have deferred the vesting of their Restricted Stock Units (RSUs) until September 2026. This decision underscores management’s confidence in delivering the strategic plan and their commitment to long-term shareholder value creation.

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 308 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 our anticipated future financial results (including ability to achieve breakeven Adjusted EBITDA), the anticipated closing of our PIPE financing, the anticipated benefits of our products and solutions, 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.

Investor Contact:
IR@roadzen.ai

Media Contact:
Sanya Soni – sanya@roadzen.ai | media@roadzen.ai

FAQ

What is the size and price of Roadzen's (RDZN) PIPE financing announced in July 2025?

Roadzen secured a $2.25 million PIPE financing at $1.25 per share, which represents a 20% premium to recent trading levels.

When does Roadzen (RDZN) expect to reach Adjusted EBITDA breakeven?

Roadzen targets reaching Adjusted EBITDA breakeven by the quarter ending December 2025.

How long are Roadzen's PIPE shares restricted from trading?

The PIPE shares are restricted securities subject to a six-month holding period under Rule 144 of the Securities Act.

When will Roadzen's CEO and leadership team RSUs vest?

The management team has deferred their Restricted Stock Units (RSUs) vesting until September 2026, showing alignment with long-term shareholder interests.

How will Roadzen use the PIPE financing proceeds?

The proceeds will support working capital needs, continued deployment of DrivebuddyAI, and driving growth across key markets in the U.S. and India.