Cars24 Approaches $1 Billion in Sales with Revenue Surge

By siliconindia  |  Wednesday, 24 January 2024, 10:18 IST

Cars24 Approaches $1 Billion in Sales with Revenue Surge
Delhi NCR-based unicorn, Cars24, has experienced a notable upswing in its financial performance, with sales nearing the $1 billion milestone in the fiscal year ending March 31, 2023. The company's consolidated operating revenue witnessed a robust 16% increase, reaching $930.3 million in FY23 compared to $799 million in the preceding fiscal year. Established in 2015 by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal, and Mehul Agrawal, Cars24 operates as a platform facilitating the buying and selling of used cars. Revenue is primarily generated through car sales, complemented by earnings from car delivery charges, parking fees and related services.
In the fiscal year ending March 31, 2023, Cars24 witnessed a remarkable 18% surge in total revenue, reaching $946.9 million compared to $803.6 million in FY22, including other income. Notably, the company successfully reduced its net loss by 32%, achieving $168.3 million in FY23 as opposed to $248 million in the preceding fiscal year. Despite robust financial performance, Cars24 maintained its total expenditure at approximately $1 billion during the reviewed fiscal year. The company's procurement cost, constituting 74% of the total expenditure, remained relatively stable at $806 million, a minor change from $797.1 million in FY22. This stability was attributed to Cars24's strategic decision to close operations in Saudi Arabia and Indonesia during the fiscal year.
Moreover, employee benefit expenditure experienced a marginal 2% increase, reaching $93.6 million in FY23 from $92 million in the previous fiscal year, despite the company laying off approximately 600 employees and witnessing several high-level exits. Additionally, Cars24's advertising expenditure decreased by 20%, totaling $43.7 million in FY23 compared to $54.3 million in FY22. In comparison to rivals in the Indian used-car marketplace, Cars24 maintained a substantial lead in total revenue. CarDekho group reported operating revenue of Rs 2,331 crore ($284.2 million) in FY23, while CarTrade observed an increase in operating revenue to Rs 363.74 crore from Rs 312.72 crore in the previous year, reporting a profit of Rs 40.3 crore during the fiscal year.

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