CARS24 funding has taken center stage with a massive INR 345 Cr infusion from its Singapore-based parent, Global Car Group Limited. This significant capital boost, aimed at strengthening core offerings and fueling expansion, underscores CARS24’s dominance in India’s booming used-car market. In this article, Startup INDIAX explores how this funding empowers CARS24 to innovate, scale, and reshape the pre-owned vehicle industry. Readers will learn the strategic implications, market trends driving this growth, and what it means for entrepreneurs and consumers. With expert insights and data, this piece establishes why CARS24’s latest move is a game-changer.
Table of Contents
How Will CARS24 Funding Drive Strategic Growth?
Who Are the Key Players Behind CARS24?
CARS24, Founded in 2015 by Vikram Chopra, Gajendra Jangid, Mehul Agrawal, and Ruchit Agarwal, CARS24 has revolutionized how Indians buy and sell used cars. Headquartered in Gurgaon, the company operates as a tech-driven platform that simplifies transactions with transparency and efficiency. With a valuation exceeding $3.3 billion and backing from heavyweights like SoftBank and Alpha Wave Global, CARS24’s recent INR 345 Cr funding from Global Car Group Limited signals strong confidence in its vision. This infusion, approved on July 21, 2025, involved allotting 3.04 lakh equity shares at INR 11,347 each, according to RoC filings.
Why Is the Used-Car Market Booming in India?
India’s used-car market is on fire, surpassing new car sales in 2024 with 5.4 million units sold compared to 4.1 million new cars. CARS24’s 2024 Indian Used-Car Market Report projects a 13% CAGR, with sales expected to hit 10.8 million units by 2030. Rising new car prices (up 32% in 2024) and a growing middle class opting for affordable, feature-packed pre-owned vehicles fuel this growth. CARS24’s funding taps into this trend, positioning it to capture a larger slice of a market projected to reach $100 billion in the next decade.
How Will CARS24 Use the INR 345 Cr Funding?
What Are the Core Offerings CARS24 Plans to Strengthen?
CARS24 plans to channel the INR 345 Cr primarily into working capital and enhancing its core offerings, such as buying and selling used cars, financing, and value-added services like warranties and insurance. In 2024, the company ventured into new car sales with an aggregator platform, offering real-time pricing and AI-powered video buying experiences. This funding will likely bolster these initiatives, ensuring seamless customer experiences across its 200+ city network in India, Australia, the UAE, and Southeast Asia.
How Does This Funding Fit into CARS24’s IPO Strategy?
As CARS24 gears up for a potential IPO, this funding is a strategic move to strengthen its financial position and streamline operations. The company has been doubling down on profitable verticals while phasing out underperforming ones, like its B2B spare parts platform Inspare and consumer-facing FourDoor services. With a 25% revenue increase to INR 6,917.1 Cr in FY24, CARS24 is signaling readiness to investors, though its net loss rose 7% to INR 498.4 Cr due to tech investments. This capital injection could pave the way for a blockbuster IPO, aligning with its goal to dominate the $100 billion used-car market.
What Makes CARS24 a Leader in India’s Used-Car Market?
How Has CARS24 Expanded Its Services Beyond Used Cars?
CARS24 isn’t just about selling cars—it’s building an ecosystem. Its financial arm, LOANS24, launched in 2025, offers new and used car loans, top-up loans, and even credit cards, with over INR 4,000 Cr in retail auto loans disbursed. The acquisition of Team-BHP in April 2025 merged CARS24’s tech prowess with a trusted automotive community. Additionally, services like CarTruth (pre-delivery inspections) and Crashfree India (a nonprofit for road safety) showcase its commitment to innovation and social impact.
What Role Does Technology Play in CARS24’s Success?
Technology is CARS24’s backbone. Its platform uses algorithms for pricing, demand analytics, and vehicle assessments, ensuring fair deals and trust. With 13 million monthly visitors and over 400,000 vehicles sold, CARS24’s tech-driven approach sets it apart from competitors like CarDekho and Spinny. The company’s AI-powered video buying experience and digital vault for vehicle documents enhance user convenience, making it a go-to choice for tech-savvy buyers.
Why Is India’s Used-Car Market a Hotspot for Investors?
What Are the Key Trends Driving Used-Car Sales?
Several trends are accelerating India’s used-car market. First, affordability: used cars cost about half as much as new ones, with average prices rising 24% in 2024. Second, financing options are expanding, with CARS24’s financial services arm disbursing INR 2,000 Cr in loans in Q1 FY24 alone. Third, consumer preferences are shifting toward SUVs (16.7% market share) and electric vehicles, which saw a five-fold sales increase in 2024. Non-metro cities like Pune and Ahmedabad are also driving demand, challenging metro dominance.
How Do Competitors Compare to CARS24?
CARS24 leads with a 4% market share and INR 6,917.1 Cr in FY24 revenue, outpacing rivals like CarTrade, Droom, and Spinny. While CarTrade reported a profit of INR 40.3 Cr in FY23, CARS24’s scale and diversified services give it an edge. Spinny’s 334% revenue jump in FY22 was impressive, but its INR 490 Cr loss highlights profitability challenges. CARS24’s focus on technology and financing, coupled with international expansion, positions it as a frontrunner.
What Does This Funding Mean for Entrepreneurs and Consumers?
How Can Entrepreneurs Learn from CARS24’s Strategy?
CARS24’s success offers lessons for startup founders. First, leverage technology to solve real problems—its pricing algorithms and digital platform streamlined a fragmented market. Second, diversify revenue streams, as seen with LOANS24 and new car sales. Third, adapt to market trends, like focusing on profitable verticals pre-IPO. Entrepreneurs can emulate CARS24’s customer-centric approach and data-driven scaling to build resilient businesses, as highlighted by Startup INDIAX’s coverage of innovative startups.
What Benefits Await Consumers in the Used-Car Market?
For consumers, CARS24’s funding means better services and more choices. Expect enhanced financing options, transparent pricing, and innovative features like home test drives and digital document storage. With 62% of sales from hatchbacks and a growing SUV demand, buyers can access diverse inventories. CARS24’s focus on trust—through services like CarTruth—ensures safer, hassle-free purchases, making it easier for Indians to own quality pre-owned vehicles.
Conclusion: Join the Conversation with Startup INDIAX
CARS24’s INR 345 Cr funding is more than a financial milestone—it’s a testament to the potential of India’s used-car market and the power of tech-driven innovation. As CARS24 scales new heights, it sets a blueprint for entrepreneurs and delivers value to consumers. What’s your take on this funding and its impact on the auto industry? Share your thoughts in the comments, explore more startup stories on Startup INDIAX.
FAQs
What is CARS24’s latest funding amount?
CARS24 raised INR 345 Cr from its Singapore-based parent, Global Car Group Limited, in July 2025.
How will CARS24 use the INR 345 Cr funding?
The funds will support working capital needs and strengthen core offerings like used-car sales, financing, and new car platforms.
Why is India’s used-car market growing?
Rising new car prices, better financing, and demand for affordable vehicles drive growth, with sales projected to hit 10.8 million units by 2030.
What makes CARS24 different from competitors?
CARS24’s tech-driven platform, diversified services like LOANS24, and international presence set it apart from rivals like Spinny and CarDekho.
Is CARS24 preparing for an IPO?
Yes, CARS24 is streamlining operations and boosting profitable verticals, signaling IPO readiness, though no date is confirmed.