India-based used cars marketplace Cars24 has posted INR69.1 billion ($820 million U.S.) in operating revenue for the 12 months to March 2024 (FY23-24), up 25.1% from its previous financial year. The sale of used cars accounted for about 92% of the company’s revenue in FY23-24.
Cars24’s losses grew by 6.4% year on year (y-o-y) to INR4.9 billion in FY23-24. The company disclosed an adjusted EBITDA of INR3.1 billion.
Cars24’s total expenses grew by 23.3% y-o-y to INR74.6 billion. In line with Cars24’s c-to-b-to-c, asset-heavy model, the procurement of used cars was the biggest cost item, accounting for about 82% of total expenses.
Cars 24 co-founder Ruchit Agarwal said that revenue growth was driven by an increase in both unit sales and average selling price per car. “We sold more than 200,000 cars last year, the highest annual sales in our history,” he added.
On the product front, Cars24 has been actively adding ancillary auto offerings to Orbit, its one-stop-shop car management service. Most recently, it launched a pre-delivery inspection service called CarTruth. Last month, it unveiled a collaboration with a transportation-related legal assistance site to resolve traffic fines. In August, it began working with caller ID app TrueCaller to make customer communications more streamlined and secure.
Founded in 2015, Cars24 was initially a b-to-b marketplace but later shifted to a c-to-b-to-c model. In July this year, it raised INR2.5 billion in funding from its Singapore-based parent company Global Car Group Ltd. Cars24 is planning an IPO next year.
