Cars24’s founder says listing window in FY26; H1 FY26 adjusted net revenue up 18% to ₹651 crore
Online used-car platform Cars24 is aiming to go public within the next 6 to 12 months, founder and chief executive Vikram Chopra said after sharing the company’s first-half FY26 scorecard in a post on X. The timing, he indicated, will ride on momentum in the core retail and financing businesses.
Cars24 IPO: Financial Performance
Cars24 reported adjusted net revenue of INR 651 crore for April–September 2025, up 18% year-on-year, while the adjusted EBITDA loss narrowed 36% to INR 162 crore, Cars24 H1 FY26 update showed. Vehicle transaction GMV stood at INR 3,731 crore, with retail contributing more than half of GMV for the first time as the firm tilted away from lower-margin wholesale transactions. The company said any listing would be subject to market conditions and regulatory clearances.
Financing and Services Scale Up
The auto-tech platform said loans disbursed through its financing arm rose 38% year-on-year to INR 1,637 crore in H1, even as about 85,000 cars were transacted across India, the UAE and Australia. Management expects adjusted net revenue of over INR 750 crore in H2 FY26 as the mix shifts towards higher-margin retail, financing and ownership services. Monthly users on its ecosystem were pegged at over 1.1 crore.
“Hoping to go for the IPO in 6–12 months from now,” Chopra wrote, flagging the company’s recent operating improvements and a large addressable market.
“Most players are likely to achieve an operating breakeven over the next 12–18 months,” said Poonam Upadhyay, Director, CRISIL Ratings, noting that cost control and integrated offerings such as financing and insurance are narrowing losses across the organised used-car segment.
Background: Growth, Losses and Recent Deal-Making
In FY24, Cars24’s revenue from operations rose 25% to INR 6,917 crore, while the company posted a net loss of INR 498 crore, according to company financials reported then. The firm’s last major fundraise was USD 450 million in 2021 at a valuation of about USD 3.3 billion.
The company has been broadening its user funnel via acquisitions. Over the past year, Cars24 bought auto community platform Team‑BHP and, earlier this month, acquired vehicle information app CarInfo to expand ownership services; financial terms for the latter were not officially disclosed.
Market Context
CRISIL expects India’s used-car volumes to grow 8–10% in FY26, taking the market past six million units and lifting the used-to-new sales ratio to about 1.4, underpinned by digital adoption and better access to finance. That backdrop may aid investor appetite, though availability of quality inventory and execution on profitability targets remain variables as Cars24 firms up its draft prospectus.
Cars24 IPO At a Glance
- Listing plan: Cars24 IPO targeted in 6–12 months, subject to market and regulatory approvals.
- Cars24 H1 FY26: Adjusted net revenue INR 651 crore (+18% YoY); adjusted EBITDA loss INR 162 crore (−36% YoY).
- GMV mix: INR 3,731 crore vehicle GMV; retail now over 50% of GMV.
- Financing: INR 1,637 crore loans disbursed in H1 (+38% YoY).
- FY24 base: Revenue INR 6,917 crore; net loss INR 498 crore.
- Recent deals: Acquired Team‑BHP (Apr 2025) and CarInfo (Jan 2026).
- Sector trend: Used-car volumes seen growing 8–10% in FY26 (CRISIL).
Conclusion
Cars24 IPO aligns with improving unit economics from a retail-and-finance pivot and a supportive demand cycle in India’s pre-owned car market. Execution on profitability, regulatory milestones and market conditions will determine whether the Gurugram-based firm can translate operating momentum into a successful market debut over the next year.
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