1. The Company and its Subsidiary, TZF Logistics Solutions Private Limited have incurred losses and witnessed negative operating cash flows in the past. Further, its Subsidiary, BlackBuck Finserve Private Limited, has witnessed negative operating cash flows in the past.
2. The company depends on its business partners in its payments and vehicle financing offerings. Its partners in the company payments offering contribute to a significant portion of its revenues (45.26% of total revenue from continuing operations in Fiscal 2024). The loss of any such partners may adversely affect its business, results of operations and financial condition.
3. Its revenues are significantly dependent on the company payments and telematics offerings, which contributed 94.53% to its total revenue from continuing operations in Fiscal 2024. Any negative impact on these offerings could materially affect its business, results of operations and financial condition.
4. The company depends on certain key suppliers to procure a significant portion of its vehicle tracking solutions. Any loss of the relationship with these suppliers or any supply chain disruption could adversely affect its business, results of operations and financial condition.
5. An inability to attract new truck operators or retain its existing truck operators could materially and adversely affect its business, results of operations and financial condition.
6. Its vehicle financing offering exposes it to various risks including in relation to high-risk borrowers and collateral recovery which could adversely affect its business, results of operations and financial condition.
7. The company has limited experience in its vehicle financing offering, which makes it difficult to accurately assess its future growth prospects and may negatively affect the company's business, results of operations and financial condition.
8. There are outstanding legal proceedings involving the Company, Promoters and Directors. An adverse outcome in any of these proceedings may affect its reputation and standing and impact the company's future business and could have a material adverse effect on its business, results of operations and financial condition.
9. The company has in the past compounded delays in filing of certain forms with RBI for certain allotments made by the Company, and have paid the compounding fee. The company has also paid late submission fees for delays in filing of forms with RBI in respect of certain allotments made by the Company.
10. The company avail certain services of third-party service providers for its platform, and any disruption of or interference with the company use of such service could adversely affect its business, results of operations and financial condition.