Cars24, a leading e-commerce platform for pre-owned vehicles, recorded impressive growth in the fiscal year ending March 2024. The company reported a 25% year-on-year increase in revenue, reaching ₹6,917 crore compared to ₹5,530 crore in FY23. Despite this, Cars24 maintained net losses of ₹498.4 crore while achieving an adjusted EBITDA of ₹318.8 crore during the period.
The sale of cars, primarily through auctions and retail, drove 92% of the company’s revenue, rising by 24% to ₹6,400 crore in FY24 from ₹5,164 crore in FY23. Financial services contributed ₹300 crore, while additional revenue came from parking fees, service charges, and value-added services such as insurance and warranties. Notably, Cars24 sold 2,00,000 vehicles in FY24.
Based in Singapore, Cars24 oversees operations across 12 subsidiaries, including India, Australia, the UAE, and Thailand. While the consolidated financials are pending, the Indian entity’s figures reveal that car procurement formed the largest cost center, accounting for ₹6,106 crore or 81.8% of total expenses. Other expenditures, including employee benefits, technology, and advertising, brought the total expenditure to ₹7,461 crore, up from ₹6,053 crore in FY23.
The company claims to have improved its gross margin by 35%, with steady losses attributed to controlled expenses amidst significant revenue growth.
As a key player in the pre-owned vehicle market, Cars24 faces competition from companies like Spinny, which reported ₹3,725 crore in revenue but higher losses of ₹590 crore in FY24. Unlike Spinny, Cars24 hasn’t raised external funding since December 2021, when it secured $450 million at a valuation of $3.3 billion. Its investors include Alpha Wave, SoftBank, Tencent, and DST Global.
Co-founder Gajendra Jangid recently hinted at plans for an IPO, though a timeline has yet to be confirmed. With steady growth and operational improvements, Cars24 continues to solidify its position in the growing pre-owned vehicle market.