In what appears to be a strategic transition rather than turmoil, Cars24 is undergoing a wave of senior-level exits just as it gears up for a potential IPO. The latest development comes with cofounder and COO Mehul Agarwal stepping away from his executive responsibilities after more than a decade at the company.
While such exits can often raise eyebrows, in Cars24’s case, they seem aligned with a broader evolution—from a founder-led startup to a professionally managed, IPO-ready business.
Credits: Mint
Mehul Agarwal Steps Back After 11 Years
Taking to LinkedIn, Mehul Agarwal announced that he would be stepping back from his “operating role” after 11 years of building Cars24. However, this isn’t a complete exit. He will continue to remain on the company’s board, signaling an ongoing association, albeit in a different capacity.
His departure marks the end of a hands-on journey that began in 2015 when he co-founded Cars24 alongside Vikram Chopra, Gajendra Jangid, and Ruchit Agarwal. Before Cars24, Agarwal and Chopra had already collaborated on FabFurnish, a furniture and home interiors platform.
Reflecting on his decision, Agarwal emphasized that while there is never a “perfect timing,” he believes the company is at its strongest point yet—making this the right moment for transition.
A Domino Effect in the Leadership Team
Agarwal’s move follows closely on the heels of another major leadership change. Cofounder and CMO Gajendra Jangid also recently stepped away from his executive role, transitioning into an advisory position.
Earlier in March, Himanshu Ratnoo, who led the company’s India used car business, announced his departure as well.
Taken together, these exits suggest a broader restructuring at the top—likely aimed at bringing in new leadership suited for the next phase of growth. For startups approaching IPO, this shift from founding operators to specialized executives is a familiar playbook.
From Startup to Global Scale
What makes the timing of these exits particularly interesting is Cars24’s current business momentum. According to Agarwal, the company has just recorded its first globally profitable quarter—an important milestone for any startup eyeing public markets.
Today, Cars24 is a $3 billion business operating across three geographies, with multiple business lines spanning vehicle transactions, ownership services, and automotive data. The company is increasingly positioning itself as a full-stack vehicle ownership platform rather than just a marketplace.
Agarwal also hinted at a larger ambition—building a $100 billion company—while stressing the need for an “AI-native” and high-energy team to drive the next phase.
IPO on the Horizon
The leadership reshuffle comes at a time when CEO Vikram Chopra has already indicated that Cars24 is likely to go public within the next 6 to 12 months.
Such transitions are often seen as part of IPO readiness. Investors typically prefer a stable, execution-focused leadership team with clear governance structures—something that often requires founders to shift into strategic or board-level roles.
Cars24 has also been actively strengthening its ecosystem ahead of the listing. The company recently acquired CarInfo and Vehicle Info to deepen its capabilities and move closer to becoming an end-to-end automotive platform.
Financial Growth with Improving Efficiency
On the financial front, Cars24 has shown steady progress. In the first half of FY26, the company reported an 18% year-on-year increase in adjusted net revenue, reaching ₹651 crore.
More importantly, it has managed to significantly reduce its losses. Its adjusted EBITDA loss narrowed by 36% year-on-year to ₹162 crore, indicating improving operational efficiency—a key metric investors watch closely ahead of IPOs.
A Broader Founder Trend
Cars24’s leadership changes are not happening in isolation. Across the Indian startup ecosystem, several founders have recently stepped back from operational roles as their companies mature.
For instance, Aman Gupta transitioned away from his day-to-day role at boAt ahead of its IPO plans to focus on a new venture, OffBeat. Similarly, Deepinder Goyal has also stepped back from active leadership at Zomato to pursue personal projects.
This reflects a broader shift in how startups evolve—from founder-driven hustle to institutionalized, scalable businesses.
Credits: Moneycontrol
The Road Ahead
For Cars24, the coming months will be crucial. The company is not just preparing for an IPO—it is redefining its identity in the automotive ecosystem.
The exit of key founders from operational roles may seem like the end of an era, but it could very well mark the beginning of a new one—where Cars24 transitions into a global, tech-driven automotive powerhouse.
Whether this leadership reset strengthens investor confidence or raises questions will ultimately depend on execution. But one thing is clear: Cars24 is entering its most defining phase yet.
