Cars24, a top online platform for pre-owned vehicles, has let go of approximately 250 employees from its product and technology teams as part of a larger restructuring effort to enhance operational efficiency.
This move follows rising competitive pressure in the used-car industry, particularly as competitors like Spinny recently secured $131 million in funding from Accel’s Leadership Fund.
Confirming the development, Cars24 co-founder and CEO Vikram Chopra said, “This is a tough decision. Over the past few weeks, we’ve had to part ways with around 200 employees across various functions. We are deeply grateful for their contributions. The layoffs are not about performance, but about structure and the bets we placed.”
Chopra added, “We’ve learned that speed without clarity is expensive, and some projects and roles were added prematurely. Moving forward, we need to be more strategic and deliberate with our investments and team-building.”
According to media reports, the SoftBank-backed company provided standard severance packages to affected employees.
Cars24 continues to provide a comprehensive suite of automotive services, including the buying and selling of used cars, vehicle financing, insurance, driver-on-demand, FASTag services, challan management, and vehicle scrapping. In December 2021, the company raised $450 million from prominent investors like SoftBank, Tencent, DST Global, and Alpha Wave.
While financial results for FY25 are yet to be released, Cars24 recorded a 25% rise in revenue in FY24, reaching ₹6,917 crore compared to ₹5,530 crore in FY23. Despite the revenue growth, the company posted a net loss of ₹498 crore and an adjusted EBITDA loss of ₹318 crore during the same fiscal year.
This update comes shortly after Cars24’s acquisition of the popular automotive forum Team-BHP, which will continue to function as an independent entity. The company also launched Fourdoor, a multi-brand car service platform, and introduced a ‘New Cars’ vertical offering AI-powered tools and home test drive services.
