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Cars24 Sells 2 Lakh Cars in FY24, Revenue Climbs to Nearly ₹7,000 Crore

• ByStartupStory     |    November 27, 2024

Cars24, the leading e-commerce platform for pre-owned vehicles, reported an impressive 25% year-on-year growth in FY24, achieving gross revenue of ₹6,917 crore compared to ₹5,530 crore in FY23. The company sold 200,000 cars during the fiscal year, as revealed in its latest press release.

Despite the growth, Cars24 posted net losses of ₹498.4 crore, while its adjusted EBITDA stood at a negative ₹318.8 crore for FY24. The firm’s largest cost component was the procurement of cars, which accounted for 81.8% of the overall expenses, growing by 23.8% to ₹6,106 crore. Total expenses rose to ₹7,461 crore in FY24 from ₹6,053 crore in FY23.

Revenue Breakdown

According to Ruchit Agarwal, Chief Financial Officer at Cars24, “The sale of cars through the auction business and retail contributed approximately 92% of the total revenue. This income grew by 24% to ₹6,400 crore in FY24 from ₹5,164 crore in FY23.”

Additionally, the company generated ₹300 crore from financial services, while the remaining revenue came from service fees, parking fees, and value-added services such as insurance assistance and warranties.

Global Operations and IPO Plans

Cars24’s holding company is based in Singapore, managing 12 subsidiaries across India, Australia, the UAE, and Thailand. Consolidated financial results, which may differ from Indian entity figures, are yet to be released.

The company has not raised external funding since December 2021, when it secured $450 million at a valuation of $3.3 billion from investors such as Alpha Wave, SoftBank, Tencent, and DST Global. However, Cars24 is gearing up for a potential IPO. Co-founder Gajendra Jangid stated, “The company is preparing for an initial public offering,” though a specific timeline has not been disclosed.

Operational Efficiency and Future Prospects

Cars24 has focused on optimizing operations to maintain stable losses despite growing revenue and scale. The company claims to have improved its gross margin by 35% in FY24, indicating a positive trajectory toward profitability.

With its significant market presence and plans for public listing, Cars24 is poised to continue its momentum in the pre-owned vehicle segment both in India and internationally.

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