The world of used cars, which is full of doubt and mistrust, has been waiting a long time for a game-changer. The game-changing factor was the arrival of Cars24, a pioneering eCommerce platform that revolutionized the used automobile market. Join us as we dive into a comprehensive analysis of the business model of Cars24 that has revolutionized the used car market and propelled the company to unprecedented heights of success.
Cars24 has come a long way from its start to become a major participant in the secondary market for used vehicles. However, why is the company’s business plan so effective? How do they cope with the complexities of the pre-owned vehicle industry to provide their clients with fair and high-quality deals? To address these inquiries, we will examine the business model of Cars24 through this write-up.
Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal,launched Cars24 in 2015 to simplify the at times complicated process of buying and selling secondhand cars. After enduring the complex web of the used car market on their own, the founders saw the need for a platform that could simplify, streamline, and increase trust in the industry. The concept of Cars24 was therefore formed. Having its headquarters in Gurugram, the company conducts business throughout India.
Partnerships and commissions charged by the company when purchasing and selling used automobiles are the backbone of the Cars24 business model.Car dealerships, banks, NBFCs, and inspection and refurbishment centers are all part of their collaborations. If Cars24 wants to keep its inventory up-to-date, offer financing alternatives, and sell only high-quality vehicles, it needs these alliances.
The technological infrastructure, the network of partners and car dealerships, and the skilled team of mechanics and automobile engineers are the most important resources for Cars24. Their tech infrastructure allows them to scale and run smoothly, their dealership network guarantees a steady supply of automobiles, and their talented workforce guarantees that the cars on their platform are of high quality. There are a lot of benefits to using Cars24. It provides a simple and fast way for sellers to sell their cars, as well as fast payment and a free vehicle examination. Easy financing choices, a five-day return period, and a large selection of certified and tested cars are what purchasers can expect from this service.
Cars24 Business Model Canvas
The Business Model Canvas (BMC) is a strategic tool used to understand and visualize how a company creates, delivers, and captures value. For Cars24, the Business Model Canvas outlines the key building blocks of its operations, including its partners, activities, customer segments, revenue streams, and more. It provides a clear snapshot of how Cars24 functions as a tech-driven platform in the used automobile market.
Cars24 Business Model Canvas
Key Partners
Car dealerships
Banks and NBFCs (for financing options)
Inspection and refurbishment centers
Skilled mechanics and automobile engineers
Technology and logistics providers
Key Activities
Buying and reselling used vehicles (C2B & C2C)
Car inspection, certification, and refurbishment
End-to-end transaction management
Financing and insurance facilitation
Platform and app development
Customer support and logistics handling
Value Propositions
Simple and fast car selling process for individuals
Free car inspection and instant payment for sellers
Certified, tested used cars with warranty for buyers
Cars24 operates on the asset-heavy customers-to-business (C2B) model, which entails purchasing pre-owned vehicles from private parties and dealers and then reselling them to other parties.
Although the exact fees are not made public, it has been reported in the media that Cars24, in contrast to classifieds platforms that rely on listings, facilitates the entire transaction, charging a small registration fee in addition to a commission of 4-5% on each sale. The company began operations in 2015 and has already sold fewer than 1,000,000 vehicles. Their tech infrastructure allows them to scale and run smoothly, their dealership network guarantees a steady supply of automobiles, and their talented workforce guarantees that the cars on their platform are of high quality. The C2B concept is intentionally incorporated into the platform’s design. Cars are bought by the company and then sold to dealerships. The C2C business model is now part of the company’s expansion.
Under this approach, before a user buys a car, they have to either choose it from the platform’s website or go to the closest branch to test drive it.
Top Revenue Generating Used Cars Startups in India in FY23
USP of Cars24
The scarcity of secondhand cars is a problem that Cars24 is working hard to solve. Cars24 streamlines the whole buying process, in contrast to its competitors which only generate leads. It enhances the customer experience by investing in stronger technologies. The company promises the lowest rates, the quickest deals, and the most knowledgeable staff.
Cars24 SWOT Analysis
Swot Analysis of Cars24
Cars24 Strengths
Cars24 offers online services for purchasing and selling used automobiles.
The company is highly adaptable in the ever-changing market.
Online enterprises, such as Cars24, have thrived during the pandemic era due to their ability to continue growing without interruption.
Cars24 maintains profitability and client connections through its online presence, ensuring a strong position when the economy recovers.
The service delivery process is streamlined for customer convenience.
Customers can have the perfect vehicle delivered to their door in minutes without leaving their sofa.
Budget considerations are crucial for customers when buying an automobile.
Cars24 provides a fully digital solution to avoid complicated transparency procedures.
Low-interest monthly payment options are available, allowing clients to purchase cars even without immediate cash on hand.
Cars24 Weakness
Cars24’s car valuation and pricing methods often make buyers uneasy.
The pricing frequently falls short of customer expectations.
During the off-season, Cars24 experiences idle periods, and profitability is inadequate during these periods.
Cars24 Opportunities
Increasing numbers of people are planning to purchase used automobiles.
Numerous factors contribute to this trend, including:Avoidance of paying taxesCost savingsAccess to higher-quality used cars
Research indicates a global preference for second-hand vehicles.
67% of second-hand vehicle purchases occur at second-hand stores.
Environmental regulations in certain nations may require the abandonment of vehicles in excellent condition.
Car resale segments present a great business opportunity to capitalize on this trend.
Cars24 Threats
The used car market holds significant potential. Many people have recently recognized the promise of this ecosystem.
Technological advancements enable new entrants to quickly join the competition.
A major obstacle for customers considering a used car purchase from Cars24 is the lack of assurance regarding the vehicle’s condition.
This lack of assurance poses a massive threat to Cars24’s future business.
When it comes to buying and selling used cars in India, Cars24 has revolutionized the industry. They have achieved great success thanks to their forward-thinking leadership, innovative use of technology, and outstanding understanding of client needs. Cars24 has changed the way people purchase and sell used automobiles by making the process easy, transparent, and efficient. Car trading is now as easy as ordering food or a cab online since they have removed all the old hurdles.
FAQs
What is Car24 company?
Founded in 2015, Cars24 is a leading AutoTech company that is revolutionizing the sale, purchase, and financing of pre-owned cars in India, Australia, Thailand, and the UAE.
Who are the founders of Cars24?
Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal,founded Cars24 in the year 2015.
Is Cars24 a unicorn company?
Cars24 company raised US$200 million in a Series E round of funding in 2020 and became a unicorn startup as it was valued at over $1 billion.
What is Cars24 business model?
Cars24 follows a Customer-to-Business (C2B) and Consumer-to-Consumer (C2C) business model. It buys used cars directly from individuals and resells them to car dealers or other buyers. Unlike classified platforms that only list vehicles, Cars24 manages the full transaction process—from inspection and pricing to paperwork and delivery. It earns through commissions, registration fees, and value-added services like financing and insurance.
How does Cars24 earn money?
Cars24 earns money by charging a commission of 4–5% on each car sale, along with a registration or processing fee from sellers. It also makes money through resale margins on used cars it buys and sells, and by offering value-added services like car loans, insurance, warranties, and RC transfers. These services generate referral fees and additional revenue for the company.
Is Cars24 profitable?
Cars24 is not yet profitable.
How much commission does cars24 take?
Cars24 charges a commission of about 4–5% on the final sale price of each vehicle, along with a nominal one-time registration or processing fee. These fees cover the end-to-end transaction services, inspection, pricing, paperwork and platform facilitation, ensuring a smooth, transparent experience for sellers.
How does Cars24 work?
Cars24 buys used cars from individuals, inspects and refurbishes them, and then sells them to dealers or other customers through its platform. It handles the entire process, listing, pricing, paperwork, financing, and delivery, making it hassle-free for both sellers and buyers.
Who are Cars24 competitors?
Cars24 competes with several players in the used car and auto-tech space in India. Its main competitors include Spinny, CarDekho (via Gaadi.com), Olx Autos, CarTrade, and Droom. These platforms also offer online car buying and selling services, with some focusing on classifieds and others providing end-to-end transactions like Cars24.
According to media reports, used vehicle marketplace CARS24 is currently laying off an additional 120 workers from its non-core verticals as part of a reorganisation exercise, more than a month after it let off 200 workers.
The non-core verticals of the Delhi NCR-based startup are being shut down or scaled down. According to the reports, it is doing this by closing its business-to-business automotive replacement parts platform, “Inspare”, which will cause 80 workers to lose their employment.
The firm has requested staff members from Inspare’s operations, sales, procurement, catalogue, and other teams to find new employment opportunities after informing them of its decision to shut down operations.
Vikram Chopra Announcing the Shut-Down of Inspare on LikedIn
According to a LinkedIn post by CARS24 founder Vikram Chopra, Inspare, which was in the “pilot” stage, has been shut down. He did not, however, reveal how many workers were affected by this choice. According to Chopra’s tweet, the business believed the market was prepared for change. And the more it promoted adoption, the more obvious it was that it wasn’t.
A severance payout is being offered to the affected employees in accordance with their notice period. According to a media source, 40 workers at the startup’s “FourDoor” auto repair and maintenance platform have also been let go.
Questions concerning the layoffs at FourDoor were also not answered by CARS24. According to one of the sources, the reorganisation effort entails laying off more than 120 workers from CARS24’s non-core business sectors.
Notably, Chopra stated earlier this month in another LinkedIn post that customers would not be able to access two of CARS24’s platforms: FourDoor and the on-demand driver hiring tool AutoPilot. Chopra said these services are still crucial to the brand’s main transaction engine when it made the announcement.
However, the business is reducing its customer-facing operations and strengthening its support for the remaining business units. He went on to say that CARS24 was in discussions with the workers in these verticals about giving them other positions based on their “skills and ambitions”.
Due to their difficulties turning a profit, the startup is shutting down activities in these verticals. According to one of the individuals, companies that are not making money are being shut down.
Financial Outlook of CARS24
Chopra, Ruchit Agarwal, Gajendra Jangid, and Mehul Agrawal founded CARS24, an online marketplace for used car sales and purchases, in 2015. The IPO-bound business also entered the new car industry earlier this year.
200 workers were let go by the startup last month as part of a reorganisation that started as soon as it bought the domestic auto forum Team-BHP. The Singaporean parent company of the Delhi NCR-based startup invested INR 250 Cr in CARS24 last year.
Since its founding, the company has raised over $1.3 billion from investors like SoftBank, Alpha Wave Global, and Commercial Bank of Dubai, among others. In its most recent funding round, CARS24 was valued at $3.2 billion.
More than 200 employees were let go by used automobile marketplace Cars24 as part of its cost-cutting initiatives in the technology and product verticals. The layoffs coincide with the recent completion of a new $131 million investment round by Spinny, a competitor of Cars24.
A well-known media site broke the story of Cars24’s layoffs first, and since then, a lot more information about the company’s decision to fire more than 200 workers has surfaced.
In a blog post, Cars24 founder and CEO Vikram Chopra stated that the company had to make the tough choice to let go of almost 200 of its coworkers in a variety of roles over the course of the last few weeks. How hard someone works is not the point of this. This relates to the firm’s wagers and the instances in which it made mistakes.
Various Perks Offered to Exiting Employees and Reasons for Layoff
Employees will receive severance support, a résumé, LinkedIn assistance, mentorship, resources for emotional wellness, and information about new employment within the network, according to Chopra.
“The organisation has realised that some projects did not deliver what it expected,” he continued. A few positions were introduced too soon. When tested, a few theories just didn’t hold up. Additionally, there were instances in which Cars24 was unable to provide the kind of development or education that people genuinely needed.
It is simple to place the blame on outside forces or the market. However, the brand is accountable. Cars24 purchased Team-BHP, India’s biggest automotive platform, in the days preceding the layoffs. It was a “small but meaningful step towards a more trustworthy auto ecosystem in India”, according to Chopra.
Layoff has Become a Common Scenario in 2025
With big companies like Google, Microsoft, and others continuing to reduce their workforces, layoffs in the tech sector are not expected to halt in 2025.
Companies are still cutting employees in an effort to simplify operations, save money, and emphasise automation and artificial intelligence, even though these figures are much lower than the major layoffs that occurred between 2022 and 2023.
Layoffs.fyi, a website that tracks layoffs in the industry, reports that 93 organisations have laid off nearly 23,500 tech workers so far this year, and the number is still growing. Google and Microsoft are apparently contemplating a new round of layoffs, according to the most recent job reduction reports.
According to reports, AI-led restructuring and performance-based terminations are part of the corporations’ goals to increase the effectiveness of their personnel.
Vikram Chopra’s Linguistic Employment Dispute
Last year, Chopra made headlines when he invited Bengaluru-based employees to Delhi, sparking a discussion about linguistic identity and workplace inclusion.
Chopra’s post on X read: After living in Bengaluru for years, are you still unable to speak Kannada? It’s all right. Come to Delhi, or “Aa jao Dilli”.
The Cars24 CEO went on, “If you would like to return, please write to me at vikram@cars24.com with the subject ‘Delhi meri jaan.’
India’s leading auto-tech platform, CARS24, has officially acquired Team-BHP, one of the country’s most respected and fiercely independent automotive communities. This strategic move signals a new era for India’s auto ecosystem, one where growth aligns with sincerity and information fosters profound trust.
For over two decades, Team-BHP has remained a beacon for trustworthy, community-led discourse in the world of cars and bikes. Nurtured by millions of dedicated car owners and built on the principles of truth, independence and a shared passion for all things automotive, the platform has empowered enthusiasts with unbiased reviews, highly detailed ownership experiences and razor-sharp insights, without commercial influences.
Team-BHP will continue to operate independently by its founding team, with the same zero-sponsored content policy, strict moderation, and community-first approach that has earned it unmatched credibility and respect. CARS24’s involvement is focused on strengthening Team-BHP’s product, technology and AI capabilities to improve the experience of its readers and community members.
“Team-BHP is not just a forum, it’s an institution,” said Vikram Chopra, Founder and CEO of CARS24. “As a brand that is equally obsessed with solving real problems for car and bike owners, we see this as a long-term investment in empowering India’s auto ecosystem with sharper conversations, richer insights and deeper trust.”
“Team-BHP has always been built on one thing—an uncompromising love for cars, and the honesty that love demands,” said Rush Parekh, Founder of Team-BHP. “With CARS24 backing us, and their technology and data layered into our platform, we can now build with more scale, more depth, and more intent. This is about giving enthusiasts and owners sharper tools and deeper insights, without ever losing the independence, transparency, and integrity that brought us all here in the first place.”
As part of this move, CARS24 will work with Team-BHP to improve platform capabilities, enhance the user experience and bring in new features that help members make smarter automotive decisions.
Together, the two companies envision a future where buying, selling and owning a vehicle in India becomes more fun, informed, intuitive and community-driven.
About CARS24
Founded in 2015, CARS24 is already one of India’s largest auto-tech companies. But this is just the beginning. The company’s vision is to grow 100x in the next five years, seizing the rare opportunity to build a $300 billion enterprise in India.
By harnessing cutting-edge technology, it aims to revolutionize mobility and positively transform lives across India and beyond. The company’s approach is grounded in solving for scale, ensuring simplicity, and embracing sustainability in every facet of the automotive ecosystem. From empowering customers to driving industry-wide change, CARS24 is building the future of mobility today.
CARS24 is on the journey of a lifetime and seeking those who share our hunger for growth and innovation.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations.
Selling a car used to be a tedious task before the online portals made our lives easier. One such portal, which the former skipper of the Indian cricket team, Mahendra Singh Dhoni endorses is CARS24.
Founded by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal, CARS24 is an e-commerce platform focused on online car buying and selling, which aims to make the whole buying and selling process of cars easier and more efficient.
CARS24 is now a unicorn used car company. The funding on November 24, 2020, has led the company to enter the Unicorn Club by raising $200 million in financing in the Series A round. It was led by DST Global with a post-money valuation of CARS24 being $1 billion. The current valuation of CARS24 is $3.3 billion.
Read on to learn more about CARS24 and its founders, history, business model, revenue model, shareholding, competitors, funding, growth, and more.
CARS24 is a cutting-edge e-commerce platform for pre-owned autos, including cars and bikes, which strives to make buying and selling autos a breeze. The platform offers a wide range of certified cars along with smooth and convenient home delivery facilities with the click of a button.
On the other hand, the company also takes care of its sellers, whom it promises to credit the best price of their cars within an hour. With the AI-enabled pricing system that empowers the startup, CARS24 can display the accurate market price and the appraisal value of the vehicle.
CARS24 startup is an ISO 9001:2015 certified company and one of the fastest-growing used car marketplaces in India. CARS24 is the first company in the used-car industry that brought a ‘transaction-led’ approach to selling a car. With this portal, a potential car owner can easily sell their car privately with the utmost security in less than 2 hours and get paid instantly. On the other end, CARS24 has thousands of used car businesses that buy these cars online via mobile auctions from potential car owners across India.
The company, though just 6 years old, has become highly sought-after due to the demand of the supply side conducting over 100,000 transactions a year. CARS24 buys all these cars from more than 15 cities across the country and sells them to over 100 cities in India. The company’s unique C2B model has helped it to leapfrog the existing C2C and B2C models obstructively.
Building this empire on its unique advantages, CARS24 dominates the used car ecosystem that includes sectors such as financial services, and information services. Apart from dealing in used cars online, CARS24 also has an offline presence in terms of brick-and-mortar stores, with more than 155 branches in over 35 cities in India.
CARS24 is disrupting the pre-owned car industry in India and addressing the challenges faced by car owners, by providing them with a world-class customer experience that is quick, easy, and hassle-free.
CARS24 also received an NBFC license from the Reserve Bank of India (RBI) for its new entity — CARS24 Financial Services. With CARS24 Financial Services, the company will facilitate vehicle loans to customers as well as finance channel partners to help them expand their businesses. The customers will be eligible for a credit based on the car value they are buying. For consumers, the average ticket size of a loan would be INR 2.5 Lakh – INR 3 Lakh.
CARS24 – Industry
The used car market in India was valued at $31.62 billion in 2024 and will probably reach around $63.87 billion by 2029. This is an industry that hardly had to face any after-effects of the COVID-19 pandemic. The CAGR of the industry has been registered at 15.10% during the period between 2024 and 2029.
CARS24 – Founders/Owners and Team
Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal are the founders of CARS24.
Vikram Chopra
Vikram Chopra, CEO and Co-Founder of CARS24
Vikram Chopra is the CEO and Co-Founder of CARS24. He has a BTech and MTech in Engineering from the Indian Institute of Technology, Bombay, and earned an MBA in Finance from the University of Pennsylvania. Vikram is a former Co-Founder of FabFurnish an Investment Analyst of Sequoia Capital and also a Business Analyst at McKinsey & Company.
Mehul Agrawal
Mehul Agrawal, Co-Founder and COO of CARS24
Mehul Agrawal is the Co-Founder and COO of CARS24- He holds an MBA from IIM Calcutta and has worked with BCG in the past. Earlier, Mehul started an online furniture company called FabFurnish.
Gajendra Jangid
Gajendra Jangid, CMO of CARS24
Gajendra Jangid is the Co-Founder and CMO of CARS24 – Like Vikram, Gajendra too has a BTech and MTech in Engineering at the Indian Institute of Technology, Bombay. Before co-founding CARS24, Gajendra was working with Schlumberger.
Ruchit Agarwal
Co-Founder and Chief Financial Officer of CARS24
Ruchit Agarwal is the Co-Founder and Chief Financial Officer of CARS24– Graduated from Cornell University, Ruchit was a Vice President at Bank of America Merrill Lynch before co-founding CARS24.
On scanning the used cars industry, the founders quickly discovered that the industry was in utter chaos. Besides, the industry is full of loopholes that went unmended from the very beginning. A standard procedure is thus, totally absent when it comes to selling or purchasing a used car. Furthermore, the industry was also devoid of any technological advancements that would help in the pricing of the used cars and ultimately prove to be a boon.
Another obstacle related to the used cars market is in finding access to the potential users without bumping into jumbled market players who aren’t aware of a detailed appraisal of the car. Therefore, after a keen observation of the discrepancies in the market, the founders of CARS24 decided to come up with a technology that would help resolve these issues and simplify the process of purchasing and selling used cars online.
CARS24 – Mission and Vision
“Our mission is to revolutionise the way used cars are bought and sold across the world”, says the mission statement of the company.
The vision of the company is to revolutionize the way used cars are sold by coming up with an efficient and reliable way for car owners to sell used cars at a reasonable price.
CARS24 – Name, Tagline and Logo
Though CARS24 hasn’t disclosed a naming story, the name CARS24 has probably come from their idea of emerging as a 24/7 car buying and selling platform.
CARS24 Logo
CARS24 – Business Model and Revenue Model
The business model of CARS24 is based on a used-car resale business model. The CARS24 business model revolves around the parameters of buying any car from its owner at the best price compared with other car resale services in the area. Basically, what CARSs24 aims to offer Indian consumers is an alternative to other tedious means of selling a used car, thus making this process simple and convenient.
CARS24 offers a guaranteed price on any car, regardless of the model, age, or condition. So, what happens is that used car owners can sell their car in just a single visit to any CARS24 branch. Also, the user can obtain a rough valuation that is based on the details of their car online on this portal. The potential sellers who sell their cars on this platform receive an instant payment.
CARS24 also manages the handover of legal documentation relating to vehicle registration, if any, at no additional cost to the seller. This company mainly operates in areas like automotive, e-commerce, retail, and used car trade, and has grown tremendously since its inception based on this stellar model.
CARS24 follows a customer-to-business (C2B) model. It buys cars from individuals and sells them to dealers. Unlike a classified platform, CARS24 enables end-to-end transactions and charges a commission for each transaction, which equals 4-5% of each transaction amount. The sale of the pre-owned is the largest revenue driver for the company. Next, comes the financing services that CARS24 offers its customers, followed by the commission and service income. The unicorn user-car retailers also earn non-operating revenues from the return on financial assets.
CARS24 is currently hailed as the market leader in the online used car space with over 90% of the market share. The company has clocked over 4 lakh transactions to date.
Mega Refurbishment Labs
CARS24 announced its plans to launch refurbishment facilities called ‘Mega Refurbishment Labs’ (MRLs) on October 20, 2021.
CARS24 – Financials
CARS24’s financial performance shows growth in revenue but continued losses over the years. Expenses have risen consistently, impacting profitability.
Particulars
FY24
FY23
FY22
FY21
FY20
Revenue
INR 6,981.8 crore
INR 5,584.6 crore
INR 6,008.3 crore
INR 2,775.6 crore
INR 3,065.2 crore
Expenses
INR 7,487.9 crore
INR 6,052.4 crore
INR 6,256.3 crore
INR 2,967.1 crore
INR 3,356.2 crore
Profit/Loss
INR -498.4 crore
INR -467.8 crore
INR -248.1 crore
INR -191.5 crore
INR -291.8 crore
CARS24 Financials
CARS24 Revenue:
Particulars
FY24
FY23
Revenue from operations
INR 6,917.1 crore
INR 5,529.6 crore
Other income
INR 64.8 crore
INR 55 crore
Total revenue
INR 6,981.8 crore
INR 5,584.6 crore
Revenue from operations grew from INR 5,529.6 crore in FY23 to INR 6,917.1 crore in FY24.
Other income slightly increased from INR 55 crore in FY23 to INR 64.8 crore in FY24.
CARS24 Profit/Loss:
Particulars
FY24
FY23
Gross profit/loss
INR -506.1 crore
INR -467.8 crore
Operating profit/loss
INR -506.1 crore
INR -467.8 crore
Net profit/loss
INR -498.4 crore
INR -467.8 crore
Gross loss increased from INR 467.8 crore in FY23 to INR 506.1 crore in FY24.
Operating loss also grew from INR 467.8 crore in FY23 to INR 506.1 crore in FY24.
Net loss widened from INR 467.8 crore in FY23 to INR 498.4 crore in FY24.
CARS24 Expenses:
Particulars
FY24
FY23
Purchases of stock-in-trade
INR 6,019.3 crore
INR 5,038.4 crore
Changes in inventories
INR 87.3 crore
INR (107.9) crore
Employee benefit expense
INR 524.5 crore
INR 478.3 crore
Finance costs
INR 112.5 crore
INR 92.9 crore
Amortization & Depreciation
INR 212.7 crore
INR 89.8 crore
Other expenses
INR 531.7 crore
INR 460.9 crore
Total expenses
INR 7,487.9 crore
INR 6,052.4 crore
Stock-in-trade purchases increased from INR 5,038.4 crore in FY23 to INR 6,019.3 crore in FY24.
Employee expenses rose from INR 478.3 crore in FY23 to INR 524.5 crore in FY24.
Depreciation and amortization costs jumped from INR 89.8 crore in FY23 to INR 212.7 crore in FY24.
Quick Summary:
Revenue: Increased by INR 1,397.2 crore (25%), indicating business growth.
Expenses: Increased by INR 1,435.5 crore (24%), driven by higher stock-in-trade purchases and employee costs.
Profit/(Loss): Net loss increased by INR 30.6 crore (7%), reflecting rising expenses impacting profitability.
CARS24 opened its second research and development (R&D) facility in Bengaluru, Karnataka, on October 6, 2023, with the goal of promoting growth, innovation, and ecosystem development.
eChallan Service
CARS24 announces the launch of its eChallan service, on September 6, 2023. Through the CARS24 website and mobile application, private vehicle owners can monitor and clear their outstanding challans thanks to this feature.
Pilot Program
CARS24 launched a pilot program in Gurgaon that allows users to hire drivers, according to a March 12, 2024, news story. This service was introduced earlier in March with the intention of measuring consumer reaction in Gurgaon before going national. Car owners can hire drivers for round-trip, one-way, and out-of-town journeys through the pilot program.
CARS24 – Challenges
The market of used cars sure has a huge potential for growth and this is why most of the startups of today are eying this market. Therefore, CARS24 needs to fight the newcomers in the industry and tackle the existing challenges in the market from the older players. Furthermore, ensuring an adequate supply of used cars might also emerge as a challenge going forward.
CARS24 Shutdown of Supply-Focused Vertical
The company decided to shut down its businesses that strictly focus on supply in around 82 cities of India on December 10, 2021. The company would only be running its supply-side business verticals in the top 100 cities of India, as per an internal note exchanged between the co-founders of the country and its employees.
CARS24 layoffs
CARS24 has announced layoffs of around 600 employees. The used car unicorn marketplace follows many other Indian companies like Vedantu, Unacademy, Meesho, and more, which have already laid off a considerable chunk of their employees between April and May 2022. The main reasons for the layoffs in these companies are cutting costs, fear of the dearth of fundraisers, and the apprehension of a supposed market recession that will take place soon. The CARS24 layoffs have taken place because the startup was looking forward to automatize operations and eventually cutting costs. This layoff of nearly 600 of its staff as announced by CARS24 on May 19, 2022, has made the company with 6.6% of its total workforce.
CARS24 High-Level Exits
After layoffs, CARS24 sees numerous top-level exits that the startup will see in July 2022. This will include Kingshuk Sanyal, Vice President and Business Head of CARS24; Mrinal Sinha, Chief Human Resources Officer of CARS24 and Global CTO of CARS24, Jitendra Agrawal, leaving the firm.
CARS24 – Competitors
CARS24 directly faces cut-throat competition in the market. It competes with companies that operate in the same segment and cater to the same target audience such as:
CARS24 has raised a total of around $1.3 billion over 17 rounds of funding to date. The company entered the unicorn club on November 24, 2020, by raising $200 million in a Series A round. It was led by DST Global with a post-money valuation of CARS24 being $1 billion. CARS24 was the second company to achieve unicorn status in the used car space.
CARS24 has seen its Series G round of fundraising led by Alpha Wave Global on December 20, 2021, where the used-car unicorn has raised $400 million, which includes a cumulative debt funding of $100 million.
CARS24 had previously seen a massive $450 million round of equity and debt led by Softbank, Tencent, DST Global, and others on September 20, 2021. With the funding round, the valuation of the company turns $3.3 billion, as of December 20, 2021.
Here is a list of all the finding rounds of CARS24-
Date
Stage
Amount
Investor
July 27, 2024
Corporate Round
$30 Million
Global Car Group
December 20, 2021
Debt Financing
$91.2 Million
–
December 20, 2021
Series G
$400 Million
Alpha Wave Global
November 30, 2021
Debt Financing
$20 Million
Commercial Bank of Dubai
September 20, 2021
Equity and debt round
$450 Million
Softbank, Tencent, DST Global
September 10, 2021
Series F
$258.6 Million
DST Asia, Alpha Wave Incubation, Moore Strategic Partners and Tencent Holdings
June 30, 2021
Debt Round
$1.36 Million
Trifecta Capital
November 24, 2020
Series E
$200 Million
DST Global
November 6, 2019
Venture Round
$42.2 Million
Global Car Group
October 17, 2019
Series D
$100 Million
KCK Global, Unbound
June 7, 2018
Series C
$50 Million
KCK, Kingsway Capital, MPGI, Sequoia Capital India
January 2018
Seed Round
–
–
In August, Mahendra Singh Dhonihad also invested an undisclosed amount in CARS24 as a part of a Series D round. Following the deal, Dhoni became the brand ambassador and owned equity in the company.
CARS24 initially used to buy cars on behalf of the dealers, which it continued till 2019. However, it has now emerged as one of the leading used car marketplaces across the country, and the company has also started to operate in Australia, the UK, and the Middle East.
As per June 18, 2021 reports, the company began its operations in Sharjah, Dubai, Abu Dhabi, and Brisbane in Australia. Furthermore, it will be resuming its functions soon in Sydney and Melbourne.
Additionally, it also mentioned starting its operations in Southeast Asian countries and the countries of the Middle East. The total budget of the company for its international expansion is announced to be more than $100 million.
CARS24 IPO
CARS24’s Singapore entity has converted itself into a public entity on October 20, 2021.Since then, in 2024, Co-Founder Gajendra Jangid announced plans for an IPO coming out sometime in the near future. Henceforth, the company will be known as Global Car Group Limited, which was earlier recognized as Global Car Group Pte. Ltd. Furthermore, M.S Dhoni had taken a partial exit from the company.
CARS24 Shareholding pattern as of August 2023 (source: Tracxn):
CARS24 Shareholders
Percentage
Vikram Chopra
5.4%
Mehul Agrawal
4.9%
Ruchit Agrawal
1.6%
Gajendra Jangid
0.4%
Kingsway Capital
9.8%
DST Global
17.9%
Tencent
7.4%
Alpha Wave Global
9.0%
Peak XV Partners
4.8%
SVF Investment Corp
4.0%
KCK Global Limited
7.6%
Indian Continent Investment
3.0%
Angel
1.7%
ESOP Pool
4.2%
Others
18.3%
CARS24 Shareholding
CARS24 – ESOPs
The leading used-car selling platform stated that it would be buying INR 75 crore worth of shares from its employees as part of its ESOP plan. This single buyback is estimated to be valued to be more than half of the amount that the company has sold to its employee shareholders as of now.
CARS24 – Campaign
CARS24 Campaign
Buying A Car? CARS24 MRL Check Wali Hi Lena Yaar
Accordingly, the ad highlights CARS24’s solutions, which guarantee premium-quality cars and streamline the purchasing procedure. Designed by Ogilvy (North), MS Dhoni and the enormous MRLs become the movie’s protagonists.
CARS24 “Hidden Car Surprises” Campaign
Say Goodbye to “Hidden Car Surprises” with CarTruth by CARS24
CARS24, a leading autotech platform in India, has introduced CarTruth, a Pre-Delivery Inspection (PDI) service. Designed to address buyer concerns about hidden mechanical issues or flaws, this service ensures confidence in vehicle purchases. The launch is supported by a new campaign highlighting its benefits.
CARS24 – Partnerships
Here are some of the prominent CARS24 partnerships:
Just this year, in 2024. CARS24 partnered with BlackSuit, a top legal services provider on Nov 26, 2024. To improve compliance, enhance customer confidence, and streamline ownership transfers. They also partnered with Truecaller on August 21, 2024, to elevate customer experience with safe, efficient, and trusted business communication. Prior to both of these partnerships, CARS24 had partnered with Lawyered to offer a Traffic Challan solution aimed at simplifying the challan resolution process.
Driva
Australian online car financing company Driva partnered with CARS24 on September 13, 2021, with an aim to extend a loan-matching system that will help customers check out with finance within five minutes
Poonawalla Fincorp
CARS24 and Poonawalla Fincorp Ltd. have come together to fulfill the consumer loans originating through CARS24. They have announced their strategic partnership on November 22, 2021
Bajaj Finance
CARS24 partnered with Bajaj Finance Ltd. on December 30, 2021, to make used car financing easy and transparent, thereby facilitating a quick, frictionless, and streamlined shopping experience
Kotak General Insurance
Kotak Mahindra General Insurance Company Ltd has partnered with CARS24 Financial Services Private Ltd to offer motor insurance services to buyers of used cars on February 2, 2022.
CARS24 – Future Plans
CARS24 has made a commitment to improving internal diversity by aiming for a 50% rise in the proportion of women on its staff. This calculated approach positions the corporation as a socially conscious and innovative organization in the eyes of its stakeholders, reflecting the company’s commitment to promoting diversity and innovation within its own ranks.
CARS24 also plans to expand its reach and strengthen its presence in the used car market, focusing on technology to simplify car buying and selling.
FAQs
What does Cars24 do?
Cars24 is an online platform for buying, selling, and financing used cars, bikes, and commercial vehicles.
What is the valuation of CARS24?
CARS24 has already turned a unicorn in November 2020. The valuation of the company is estimated at $3.23B billion as of 2022.
What is Cars24?
CARS24 is an online used car marketplace where you can buy and sell used cars.
Who is the owner of Cars24?
Cars24 operates under Global Car Group, which is the parent of the company.
Who are Cars24 founders?
CARS24 was founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal.
Which is the parent company of CARS24?
Global Car Group is the parent company of CARS24.
What is Cars24 business model?
Cars24 operates a digital platform for buying and selling used cars, bikes, and commercial vehicles. It earns revenue through service fees from sellers, commissions from buyers, and car loans and insurance services.
What is Cars24 revenue model?
Cars24’s revenue model includes service fees from vehicle sellers, commissions from buyers, and income from car loans, insurance, and other value-added services.
What is the operating revenue of CARS24?
CARS24 reported operating revenue of INR 6,917 crore in FY24, and it reported its operating revenues to be around INR 5,530 crore in FY23.
How to sell cars online in India with CARS24?
CARS24 is the newest destination to sell cars. If you want to sell cars online in India with CARS24, then you simply need to:
Book an appointment by filling in all the information on the website, complete with the date and place of appointment
Visit the nearest branch and let the company officials inspect your car
Cars24 will provide you with the best price for your car and will handle the documentation and the RC transfer.
Can you sell used cars in Bangalore via Cars24?
Selling used cars in Bangalore with Cars24 is easy and effective for all now.
Is CARS24 an MNC or not?
If you are wondering whether CARS24 is an MNC or not, then you should know that CARS24 is a startup and still not an MNC.
Through its app, used car marketplace Cars24 has introduced Car24 Driving School, a discovery engine for finding local driving schools. According to a media report, the new offering was introduced two weeks ago and is accessible in a number of locations, including Bengaluru, Chennai, Mumbai, Ahmedabad, and Delhi NCR. The business started testing the service at the end of last year, according to the media report. These driving schools are not currently subject to listing fees from Cars24. This might alter, though, if the offering becomes popular. By providing all car-related auxiliary services, the company hopes to become a one-stop shop for car owners.
Company Already Offering Plethora of Services
A dashboard to track PUC, challans, insurance, and service history; a vault to keep papers; driver recruiting; car scrapping; and a car management system are just a few of the car-related services that the business introduced last year. The business previously referred to its app as a “super app.” Cars24, a platform for buying and selling old automobiles in India, Australia, and the United Arab Emirates, was founded in 2015 by Gajendra Jangid, Vikram Chopra, Ruchit Agarwal, and Mehul Agrawal. Additionally, it offers financing for auto purchases.
Cars24’s Financial Outlook
CarTrade, CarDekho, Spinny, and Droom are some of the competitors of Cars24. Cars24 has raised more than $1.3 billion in capital so far, and its investors include well-known companies like Alibaba, SoftBank, DST Global, Peak XV Partners, and Alpha Wave. When it raised $400 million in 2021, its latest valuation was $3.3 billion. Due to a rise in unit sales and the average selling price per car, the startup’s operational revenue increased by 25% to INR 6,917.1 Cr in FY24 from INR 5,529.6 Cr the year before. From INR 467.7 Cr in FY23 to INR 498.4 Cr, its net loss increased by 7%.
India’s Used Car Market
Numerous reasons, including the COVID-19 pandemic’s effect on personal mobility preferences, the expansion of financing options available in the used car market, and the decline in cash inflow for new car purchases, are contributing to the dramatic alteration of the Indian used car industry.
Due to consumers looking for alternatives to new cars, the supply and demand for used cars have increased as a result of this change. With the introduction of new pollution regulations and an emphasis on lowering the production of diesel cars, the market is expected to rise significantly.
The Indian used automobile industry is projected to reach $36.39 billion in 2025 and increase at a compound annual growth rate (CAGR) of 15.10% to reach $63.87 billion by 2029, according to an analysis by Motor Intelligence. With more than INR 5,500 crore in revenue, Cars24 is the top used automobile company in India. Last year, Spinny’s revenue increased by almost 30 times, putting it in second place. Next on the list are Droom, OLX, CarDekho, and CarTrade.
This Pandemic has brought many changes in our lifestyles and hence the market. One such change is the drastic increase in demand for a used car. But strangely, it’s much before the pandemic that the demand for a used car was so high. This pandemic has just fueled it more.
After India entered the BS-VI era in auto-industry from April 2020, the value proposition of the used cards is growing stronger. People in India have always been price-conscious. They are expecting cars to become expensive due to additional technology costs. Which has led them to opt for used cars rather than the new ones? And why not? When they are getting a better option for the same price as that of the new car !!
As per the MD and CEO of Mahindra First Choice Wheels (MFCW), companies are gradually focusing on reducing the production of diesel cars. After Maruti Suzuki decided to exit the diesel car segment by April 2020, the demand for compact diesel cars in the used car market showed a steep growth. Unless of course, there is a backlash against diesel cars.
The markets are dominated by the major players like OLX, Mahindra First Choice Wheels, Cars24, Maruti True Value, Hyundai H Promise, and others.
Some Factors, that affect the growth of the used cars in the market are:
Organized Channel Expected to Register Higher CAGR
Growing demand for luxury cars
Competitive Landscape
Increased Reliability
Reduction of the Ownership period
stacked up used cars
Organized Channel Expected to Register Higher CAGR
In the Indian market, the organized phase is anticipated to witness a CAGR growth of 22.79% throughout the forecast amount.
This marketplace for used automotive has seen vital growth over the last 3 years. This growth increase is especially driven by sales of used cars in railway system cities and an increase in online sales platforms, like CarDekho, Cars24, Droom, etc.
The majority of the OEMs have already entered the used automotive market. and people WHO didn’t enter the used automotive market at the initial stage entered the market throughout the last 5 years. Renault started the pre-owned automotive business in 2015 and Nissan had entered the business in 2017.
Significant OEMs in the Asian country, like Maruti Suzuki, Mahindra, Hyundai and Toyota, and luxury automotive makers, like BMW, Audi, and JLR, have their used automotive network. The sales have enlarged since 2017.
Consumers like safety, transparency, convenience, and low risk, whereas buying a second-hand automotive. that ought to act in favor of the organized sector. nevertheless, the unorganized sector occupies nearly eightieth of the whole market than the organized sector.
sales in organised sector vs un-organised sector
Growing Demand for Luxury Cars
One of the main reasons for the rise in the used automotive business is the demand for luxury cars. Before, owning a luxury automotive was accustomed to being a dream for the bulk, chiefly owing to money issues. however, this can be step by step dynamic, because the shoppers should buy used automotive.
Some major factors driving the expansion of the used luxury cars are as follows –
luxury cars have a high rate of depreciation worth,
youth driving towards higher model on low value
in urban cities, deprivation in finance management, and want quality product.
increase in the online marketplace for used automotive.
One of the major reason for the increase in used car business is the demand for luxury cars. Before, owing a luxury car was used to be a dream for the majority, mainly because of financial problems. But this is gradually changing, as the consumers can buy used car.
Reduction of Ownership period
Owners of the posh cars tend to unload their vehicles within a year or two. As they need for upgraded and higher models. A few years ago , the possession amount was of 6-7 years for many cars. It’s currently reduced to around four years and is predicted to dip additional to 3.5 years by 2021. This directly impacts the availability of used cars in market and additionally in good shape. That additional has led in accessibility of alternative for the shoppers.
Competitive Landscape
Online Presence
Opening of on-line platform could be a major force behind a rise within the numbers of the used vehicles business. Conversion has conjointly been instrumental in organizing the used automotive business on-line that historically been aloof from the net area.
With the existence of on-line portals, customers are able to flick through variety of used cars that work into their budget. It’s conjointly created the purchasers aware and able to search full regarding their future purchases yet.
Organised Players
The marketplace for used automotive in Asian country is generally commanded by major players like OLX, Mahindra 1st alternative Wheels, CARS24, Maruti True worth, and Hyundai H Promise. They have the biggest share of the market due to their business models and enlarged variety of pre-owned automotive shops.
Quikr, Honda automobile Terrace, Ford Assured, Toyota U-Trust, etc., are within the method of increasing their shops and operations within the native market.
Due to the increasing technological advances in the automobile sector, cars have gotten a lot of reliable. A well-maintained automotive can simply run, not bothering for years. This means, even the second owner of the vehicle, will be assured of a hassle-free driving possession expertise. Manufacturers are providing long pledge periods up to 7 years in some cases. This offer gives rise to the preference of shopping for a second user automotive. They get the advantage over manufacturing defects which will be treated with no overhead prices.
The used automotive market in the Asian country was valued at USD 24 billion in 2019. And it’s expected to register a CAGR of fifteen.12% throughout the amount (2020-2025).
The demand for used luxury cars has been growing at some thirty-fifth – four-hundredth year-on-year basis.
OLX’s report shows, the used luxury vehicles whose value was Rs 15lakh or more were the foremost most popular alternative among the shoppers.
Every month over 55,000 luxury cars are listed. The provision for premium cars jumped by over fourfold in 2017.
According to the OLX automobile Note report, 38th% of the 4-wheeler listing consisted of top-end sedans and luxury cars.
Mahindra 1st alternative Wheels has recorded sales growth of four-hundredth throughout 2018-19. that registered a revenue of Rs 148 crore.
It is sold-out over 250,000 used cars throughout 2018-2019.
CarDekho has been in the number 1 position. Within the on-line used automotive market recording a Year-on-Year rate of regarding 100 percent over the last 3 years.
With COVID-19, folks are following social-distancing. While they’re attempting to urge back to their family, folks are preferring personal transport over the public. and during this time of crisis, the economic resolution is to shop for a second-hand automotive
Rishabh Rathi
