Auto-tech unicorn CARS24 has taken another significant step toward its long-awaited IPO, raising INR 345.2 crore (~USD 40 million) from its Singapore-based parent entity, Global Car Group. The fresh capital comes through the allotment of 3.04 lakh equity shares at an issue price of INR 11,347 per share, according to filings with the Registrar of Companies.
CARS24’s latest funding follows an INR 250 crore investment in July 2024, underscoring the parent group’s confidence in CARS24’s long-term strategy as it sharpens focus on profitability, trims non-core verticals, and strengthens its India operations.
Strengthening CARS24 IPO Preparations
The company plans to channel the new funds primarily into working capital and bolstering its core business segments. While CARS24 has aggressively diversified over the years—venturing into insurance, lending, and even new car marketplaces—it is now recalibrating to concentrate on high-growth and profitable verticals ahead of the IPO.
According to some sources, this entails a dual strategy:
- Doubling down on its used-car marketplace, financing, and value-added services such as challan and FASTag management.
- Scaling back or shuttering less profitable bets. Earlier this year, CARS24 closed its B2B spare parts venture Inspare, wound down consumer-facing components of its servicing platform FourDoor, and exited its driver-on-demand offering AutoPilot—a consolidation that also resulted in the layoff of over 300 employees.
Co-founder Gajendra Jangid, in a September 2024 interview, confirmed that the IPO is “on the cards” and preparations are underway to list in India, though no timeline has been committed. He emphasised that CARS24’s next phase, which he called “Version 2 of Cars24,” would see the company dominate every organised auto segment—from buying and selling to repair, servicing, and compliance-related offerings like FASTag.
Leadership Shift to Drive Innovation
As part of this transition, Himanshu Ratnoo was recently elevated to CEO of Used Cars India. Ratnoo, who joined the company in 2020 as Vice President and spearheaded the wholesale business, will now oversee C2B and retail operations, focusing on franchise-led growth, luxury car monetisation, and customer experience innovations.
Founder and global CEO Vikram Chopra noted in an internal email that Ratnoo’s appointment reflects CARS24’s ambition to simplify car ownership while scaling value-added services.
Financial Snapshot: Growth with Losses
On the financial front, CARS24 reported a 25% year-on-year rise in revenue in FY24, touching INR 6,917 crore, compared to INR 5,530 crore in FY23. However, the company’s net loss widened by 7% to INR 498.4 crore, largely attributed to heavy investments in technology, data science, and customer experience.
Despite the losses, the company reported a positive adjusted EBITDA of INR 318.8 crore, signalling operational improvements.
The Road Ahead
Since its founding in 2015, CARS24 has built a multi-geography presence spanning India, Australia, the UAE, Southeast Asia, and the Middle East. Alongside its marketplace, the company operates an NBFC arm—CARS24 Financial Services, which provides lending products. It has also expanded into adjacent services, including insurance and vehicle scrapping. In April 2024, CARS24 bolstered its ecosystem further by acquiring the popular automotive forum Team-BHP.
Backed by investors like DST Global, Falcon Edge Capital, and Alpha Wave, the company has raised over USD 900 million since its inception. Now, as it approaches a likely public listing, CARS24’s challenge will be to strike the delicate balance between growth and profitability—a test that has already proven difficult for some of its peers in India’s volatile startup ecosystem.
As Jangid put it: “We need to gain the confidence of not only the customers but also investors. If we follow the right guidelines, stay compliant, and clearly show the right trajectory, I’m optimistic about the long term.”
With fresh capital, a sharpened strategy, and a leadership revamp, CARS24 appears to be steering firmly toward its IPO runway—aiming to cement its position not just as a used-car marketplace, but as a comprehensive auto-tech powerhouse.
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