Cars24 trims losses by 12%, even as revenue doubles in FY20

Cars24 trims losses by 12%, even as revenue doubles in FY20
Photo Credit: Company photo
28 Dec, 2020

Used cars marketplace Cars24 doubled its consolidated revenue year-on-year to Rs 3,065 crore for the financial year 2019-20. 

The company cut its net loss margins by 12% to Rs 284.9 crore in FY20 from Rs 325.6 crore in the year-ago period.

The latest new entrant into the unicorn club, Cars24’s consolidated net sales for the reported period stood at Rs 2,998 crore, compared to Rs 1,654 crore in FY19.

The Gurugram-based company’s expenditure grew about 66% in FY20 to Rs 3,332 crore, compared to Rs 2,007 crore for the same period last year.

Founded in 2015 by Vikram Chopra and Mehul Agrawal, Cars24 uses vehicle appraisal technology with AI-enabled pricing algorithms to offer accurate market price for every vehicle, backed by a scaled infrastructure.

The firm, which forayed into the used two-wheelers category in June this year, said it has already transacted over 3,000 vehicles so far. 

The company acquired an NBFC license for its financing business last year. 

Last month, the company launched an ESOP buyback scheme worth $4.7 million. 

Prior to the $200 million growth capital that propelled it to the unicorn club, the company had raised $44 million from its parent entity in November 2019, and announced a $100 million funding round in October 2019, along with a MS Dhoni-led Series D funding round in August 2019.