CARS24, the SoftBank-backed used-car marketplace, is preparing to ride India’s resurgent startup IPO wave. Ikram Chopra, CEO and cofounder of the company, has said that CARS24 is aiming to go public within the next six to twelve months, signalling growing confidence in both market conditions and the company’s improving financial health.
While Chopra stopped short of revealing the size of the proposed public offering or the valuation CARS24 is targeting, his comments come at a time when investor appetite for tech-led businesses is returning. With several digital-first startups already filing their red herring prospectuses this year, CARS24’s timing appears strategic as it looks to tap public markets to deepen its presence in the $200-billion used car industry.
Credits: StartupTalky
Improving Financial Health Strengthens IPO Case
CARS24’s IPO ambitions are underpinned by steady progress on its financial metrics. In a LinkedIn post, Chopra highlighted that the company’s adjusted net sales grew 18% year-on-year to ₹651 crore in the first half (H1) of FY26. This top-line growth also helped the company significantly narrow losses, with adjusted EBITDA loss reducing by 36% year-on-year to ₹162 crore during the same period.
The momentum, according to the founder, is expected to pick up further in the second half of the fiscal year. CARS24 is on track to post adjusted net sales of ₹750 crore in H2 FY26, representing a sharp 35% year-on-year growth. If achieved, this acceleration could mark a turning point for the company as it positions itself as a maturing, IPO-ready business rather than a cash-burning startup.
From Marketplace to Full-Stack Vehicle Ownership Platform
Once known primarily as a buy-and-sell platform for used cars, CARS24 has undergone a major transformation over the past 18 months. Through a series of acquisitions and product launches, the company has evolved into an end-to-end vehicle ownership platform.
In 2025, CARS24 entered the automotive content-commerce space by acquiring Team-BHP, followed by the purchase of car information portal CarInfo to deepen user engagement and data capabilities. Today, its offerings span insurance, challan payments, CarTruth, buyback services, and chauffeur services under the Chauferly brand.
This diversification has dramatically increased activity on the platform. Transactions have surged 19 times, translating into a gross merchandise value (GMV) of ₹94 crore in H1 FY26. High-margin services enabled by CarInfo are expected to further boost profitability over time.
Strong Operating Metrics Across Markets
Operationally, CARS24 continues to scale at a rapid pace. Nearly 85,000 vehicles worth over ₹3,700 crore were transacted on its platform in the first half of FY26. Loan disbursements grew almost 38% year-on-year to ₹1,600 crore, reflecting rising traction in auto financing.
The platform recorded over 1.1 crore monthly active users during H1, and the company expects this momentum to continue. For FY26, CARS24 is targeting around 1.8 lakh car deals, underlining its ambition to consolidate leadership in the used-car ecosystem.
With a GMV of ₹3,731 crore in H1 FY26, CARS24 claims it is the largest online used-car transaction platform across India, the UAE, and Australia. Notably, the UAE business turned EBITDA-positive for the first time, reporting an adjusted EBITDA of ₹9 crore—an important milestone for the company’s global operations.
Credits: The Economic Times
Competition and the Road Ahead
CARS24’s IPO plans place it on a similar path to rival CarTrade, which has already expanded aggressively through acquisitions such as OLX India (Auto), AutoBiz, and Shriram Automall. While CarTrade previously explored a merger with CarDekho, valuation differences stalled the deal, leaving room for continued competition in the sector.
Founded in 2015 by Gajendra Jangid, Mehul Agrawal, Ruchit Agarwal, and Ikram Chopra, CARS24 entered the unicorn club in 2020 after a $200-million Series E round. Having raised over $1.3 billion so far, the company is now betting that improved financial discipline, diversified revenue streams, and a favourable IPO climate will help it make a successful debut on the public markets.
