Cars24’s Total Revenue Doubles To INR 6,008 Cr In FY22, Loss Widens To INR 248 Cr

Gurugram-based used-car marketplace Cars24’s total consolidated revenue more than doubled during the financial year ended March 31, 2022. The startup’s total income jumped 116% to INR 6,008.2 Cr in the financial year 2021-22 (FY22) from INR 2,775.9 Cr in FY21.

Revenue from operations surged 87% to INR 5,136.5 Cr from INR 2,741.3 Cr in FY21. The rise in demand of used cars during the pandemic helped the startup increase its revenue. According to a report, 4.4 Mn used cars were sold in India during FY22, and this number is expected to rise to 8 Mn by FY27 as people have become financially conscious in the aftermath of COVID and are opting for buying used cars rather than a new car. 

Besides, the startup’s used car financing vertical, Cars24 Financial Services, also contributed to the rise in its total revenue. The startup has disbursed loans worth INR 1,000 Cr since the start of the financing vertical in 2019. 

However, Cars24’s loss rose 29.5% to INR 248 Cr in FY22 from INR 191.5 Cr in FY21. 

The startup’s total expenses jumped 110% to INR 6,256.3 Cr from INR 2,967.1 Cr in FY21. The startup spent INR 548.4 Cr in FY22 on employee benefits, a jump of 154% from INR 216 Cr in FY21. 

Employee benefit expenses mostly comprise salaries, PF contributions, gratuity, and other employee welfare benefits. It must be noted that the startup laid off 600 employees earlier this year to cut expenses. Inc42 exclusively reported on the development in May.  The layoffs were later followed by some high level exits as the startup stalled its foreign expansion plans.

Meanwhile, purchase of stock-in-trade was the biggest contributor to total expenses with a 79% share. It jumped 1.6X to INR 4,963 Cr in FY22 from INR 2,945 Cr in FY21. The startup spent INR 512.7 Cr and INR 226.7 Cr on information technology expenses and advertisement and sales promotions, respectively, in FY22. 

FY22 was a big year for Cars24 in terms of funding raised. It secured $850 Mn in two rounds during the year. It raised $400 Mn in December 2021 in its Series G round, led by Alpha Wave Global, at a valuation of $3.3 Bn. A few months before it, Cars24 raised $450 Mn from SoftBank Vision Fund 2, Falcon Edge, and DST Global in September 2021.

Cars24 has raised a total funding of $1.3 Bn till date. The startup competes with the likes of CarDekho, CarTrade, Droom, Spinny, and OLX.

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