Analysis

Losses down 65%, Cars24 takes massive leap towards profitability

Gaurav Tyagi

January 17, 2024 | 6 Min Read

Cars24’s latest financials paint a picture of a company that has cracked the used car marketplace code. With losses down by nearly two-thirds and already the largest player in its space, could the Singapore-domiciled company be angling for an Indian listing?

Key Takeaways

According to filings with Singaporean regulators, Cars24 ended FY23 with revenues of Rs Rs 7,721.5 crore
While its revenue growth was a not-so-impressive ~16%, it managed to cut its losses to Rs 1,218 crore—a 65% decrease, year-on-year
This has come on the back of cutting marketing spends, reducing its workforce, and exiting difficult overseas markets
However, with domestic gross margins increasing from 3% to 11% and the company transferring various assets to its Indian entity, it appears to be readying for an Indian IPO

At a time when the organised used car market in India is experiencing a phase of consolidation, with both venture-backed startups and car manufacturer-owned platforms shifting it focus towards profitability, Cars24 appears to have stolen a march on its rivals.

Last week, the used car marketplace filed its results for the year ended March 2023 in Singapore, where the company is domiciled. While its revenue from operations grew by only 16.4% year-on-year to Rs 7,721.5 crore, the company’s annual losses shrunk by 65% to Rs 1,218 crore during the period.

Corporate

Access unlimited content at a special discounted rate. Trusted by top VC’s and leading organizations, we provide bulk subscriptions for groups of 30+. Contact us for more details

Campus

Top educational institutions have collaborated with us for campus-wide subscriptions. For bulk campus-wide access, please get in touch.

Join our community of 100,000+ top executives, VCs, entrepreneurs, and brightest student minds

Trusted by the best

Karthik Reddy

Blume Ventures

The CapTable brings a refreshing set of insights for us at the Blume team, highlighting stories that bring together the underlying business and founders with that of investors' journeys with these startups. It's an important perspective that very few bring to startup ecosystem enthusiasts.

Latest Articles

Big gaming cos have more than just cash at play

While smaller real-money gaming companies face extinction under the new gaming law, the larger players with diversified revenue streams are likely to weather the storm better.

Team Captable

Sangeet Paul Choudary on why AI's real power lies in reimagining systems, not replacing tasks

Best-selling author and business advisor Sangeet Paul Choudary argues that businesses are missing AI's real impact by focusing on intelligence benchmarks rather than system transformation.

Team Captable

India's ethanol transition explained: The science, the concerns, and the road ahead

As India moves from E10 to E20 ethanol-blended petrol, consumers and automakers weigh cost savings, environmental gains, and the engineering trade-offs

Muralidhar Swaminathan

IRCTC boards the fintech express, eyeing a bigger retail and e-commerce play

IRCTC has hopped onto the fintech train as it awaits a payment aggregator licence from the RBI. Payments will only be a slice of its expanding non-ticketing revenue pie, which already makes up 70% of the business. But can a PSU rooted in legacy systems thrive in a fast, innovation-led fintech arena?

Sohini Mitter

The IPO domino effect big money is quietly betting on

Private markets are frozen, public markets are ruthless, and investors have run out of patience — or exits. With no breakout tech, no AI glory, and flatlining valuations, India’s startups are lining up for IPOs, hoping Dalal Street will do what VCs won’t.

Nikhil Patwardhan

Convinced that The Captable stories and insights
will give you the edge?

Convinced that The Captable stories
and insights will give you the edge?

Subscribe Now

Stories

Explore