Artificial intelligence-driven insurance technology company Roadzen Inc (NASDAQ:RDZN) on Tuesday announced an agreement with Mizuho Securities ("Mizuho"), to extend the maturity date for its existing senior secured notes.
The maturity of Roadzen's $11.5 million senior secured notes was extended by 18 months, from December 31, 2025, to June 30, 2027. There are no other changes to the structure.
The extension provides Roadzen with enhanced financial flexibility to support its global growth.
The senior secured notes accrue interest at 15% annually.
Last week, Roadzen signed a deal to acquire a majority controlling stake in a licensed commercial auto insurance broker and managing general underwriter (MGU) based in California.
The MGU holds licenses in California, Texas, Illinois, and New Jersey, along with Lloyd's of London Coverholder status.
The acquisition will allow Roadzen to underwrite specialty transportation and commercial vehicle risks for major U.S. insurers and Lloyd's syndicates, serving small and mid-sized fleets through national agency networks.
The deal will merge the acquired firm with DrivebuddyAI and National Auto Club, creating an integrated telematics, roadside assistance, claims, and distribution platform for the U.S. commercial auto market.
The acquisition expands Roadzen's carrier relationships, adds 90 new fleets representing over $100 million in potential annual premiums, and is expected to contribute more than $8 million in annual revenue at 25% Adjusted EBITDA margins.
Roadzen projects the combined platform will exceed $200 million in Gross Written Premium within three years, strengthening its position in the $75+ billion U.S. commercial auto insurance market.
Price Action: RDZN shares closed lower by 11.70% at $1.510 at Monday.
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