Following a moderate rise in FY23, Cars24, an e-commerce platform for pre-owned autos, expanded by 25% year on year in the fiscal year ending March 2024. In FY24, the firm's net losses were Rs 498.4 crore, with adjusted EBITDA of Rs 318.8 crore.
Cars24 India's gross sales increased to Rs 6,917 crore in FY24 from Rs 5,530 crore in FY23, according to a business news release.
Cars24's Chief Financial Officer, Ruchit Agarwal, told a credible sourve that auto sales through auction and retail accounted for around 92% of overall revenue. This income increased by 24% to Rs 6,400 crore in FY24, from Rs 5,164 crore in FY23.
Agarwal stated that financial services generated approximately Rs 300 crore in revenue, with the remainder coming from service fees, parking fees, and the sale of other value-added services such as insurance assistance and warranties. In FY24, the firm claimed to sell 200,000 automobiles.
Cars24's parent company is headquartered in Singapore and manages 12 companies in India, Australia, the UAE, and Thailand. The company's consolidated financial results have yet to be announced, and they may differ from those reported by the Indian entity in the announcement.
The greatest cost center for the pre-owned vehicle seller was car procurement, which accounted for 81.8% of total costs. In terms of magnitude, this expense increased by 23.8% to Rs 6,106 crore in FY24.
Its employee perks, technology, advertising, legal, broker commissions, and other overheads increased the firm's overall cost to Rs 7,461 crore in the previous fiscal year, up from Rs 6,053 crore in FY23.
Cars24's strong growth in scale and regulated expenditure allowed it to keep its net losses consistent at Rs 498 crore in FY24. However, adjusted EBITDA (losses excluding all non-cash factors) totaled Rs 318.8 crore in FY24. Notably, the corporation claims to have increased its gross margin by 35% over the prior fiscal year.
Spinny, a competitor of Cars24, reported Rs 3,725 crore in sales and Rs 590 crore in loss for FY24. Cars24, like Spinny, has not raised any external money in the last three years. In December 2021, the business raised $450 million for a $3.3 billion valuation. Alpha Wave, SoftBank, Tencent, and DST Global are some of its main investors.
Cars24's co-founder, Gajendra Jangid, stated in August that the company is planning for an Initial Public Offering, although he did not provide a particular date.
