Cars24’s Revenue Jumps 25% To Near INR 7,000 Cr Mark

Car reselling marketplace Cars24 said its operating revenue jumped 25% to INR 6,917.1 Cr in the financial year 2023-24 (FY24) from INR 5,529.6 Cr in the previous year on the back of an increase in unit sales and average selling price per car.

Cars24 cofounder and CFO Ruchit Agarwal told Inc42 that the startup’s core car selling business raked in INR 6,400 Cr of revenue, while the remaining INR 500 Cr came from financial and ancillary services. 

Founded in 2015 by Agarwal, Vikram Chopra, Gajendra Jangid, and Mehul Agrawal, Cars24 offers a platform for car owners to sell their used cars while also allowing users to purchase used cars from its site and its company’s branches. It offers car financing and also earns revenue through service fees, parking charges, sale of value-added services like insurance assistance and warranties.

Meanwhile, Cars24 also saw an increase in its net loss during the year. Its loss jumped 7% to INR 498.4 Cr in FY24 from INR 467.7 Cr in the previous year, which it said was due to investments in technology, data science, and customer experience enhancements for future growth.

Despite this, Cars24 said in a statement that its adjusted EBITDA loss improved 19% to INR 319 Cr in FY24 from an adjusted EBITDA loss of INR 392 Cr in FY23 due to the growth in top line and better gross margins.

The startup said its gross margin rose 35% to INR 810 Cr in FY24 from INR 599 Cr in the previous year due to better margins on sales and incremental income from financial services and value-added services. 

Inc42 didn’t access Cars24’s audited financial statements. The story is based on the numbers shared by the startup.

Where Did Cars24 Spend?

The startup’s total expenditure zoomed 23.72% to INR 7,488 Cr from INR 6,052 Cr in FY23.

The company said that its purchases of cars (adjusted for inventory changes) grew 24% compared to the previous year. IT costs rose 18% while employee costs (excluding ESOP expenses) increased 8%.

ESOP expenses rose 44.6% to INR 26.9 Cr in FY24 from INR 18.6 Cr in the previous year.

Cars24 has raised a total funding of about $1.3 Bn till date and counts the likes of SoftBank, Alpha Wave Global, and Commercial Bank of Dubai among its investors.

It competes with the likes of CarTrade, CarDekho, Spinny, Droom, among others. 

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