India’s used-car industry is getting ready to shift gears and race toward public markets. According to Bloomberg, three of the country’s biggest online platforms — CARS24, CarDekho, and Spinny — are exploring initial public offerings (IPOs) that could together raise as much as $1 billion. If successful, these listings could reshape the competitive landscape of India’s automobile and tech-driven services sectors.
Credits: Hindustan Times
IPO Plans Shift into Gear
The companies are currently in early-stage discussions with bankers to gauge investor interest. While no advisers have been officially hired yet, sources say the startups are also weighing restructuring moves necessary to make them IPO-ready. The public listings are expected to materialize within the next 12 to 18 months, although the timeline remains tentative.
The momentum comes at a time when investor appetite for new-age tech companies in India is swelling. Just recently, Urban Company debuted on the stock market with a stellar 60% listing premium, while Eternal Ltd. — the parent of Zomato and Blinkit — has overtaken Avenue Supermarts (DMart) in market capitalization.
The Bigger Trend: New-Age IPOs
The upcoming IPOs by used-car platforms are part of a much larger new-age IPO wave in India. Several digital-first companies are preparing to test the waters of public markets.
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Groww, India’s largest investment platform, has already lined up a ₹7,000-crore IPO.
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Lenskart (eyewear), Physics Wallah (edtech), and BoAT (consumer electronics) are also drawing up plans.
With GST reforms boosting consumption and India now the fourth-largest economy in the world, these companies see a golden opportunity to attract investors seeking exposure to domestic consumer and tech-driven growth stories.
Used-Car Market: Ready for the Spotlight
India’s online used-car space has grown rapidly in recent years, fueled by rising middle-class aspirations, changing mobility habits, and increasing trust in digital-first platforms.
While CARS24, CarDekho, and Spinny are preparing for their big moves, there is already a publicly traded peer in the space — CarTrade Tech Ltd., operator of CarWale. Its 2021 IPO was a blockbuster, with demand overshooting by 20 times.
CarTrade’s stock performance further underlines investor interest: the company’s shares have surged 63% this year, far outpacing the 7% rise of the Nifty 50 index.
The Roadblocks: Financial Tune-Ups
However, the road to Dalal Street isn’t entirely smooth. Each of the three IPO aspirants faces internal challenges that need attention.
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CARS24: The company has undergone a sweeping restructuring, cutting hundreds of jobs across non-core units and shutting down ventures such as Inspare (spare parts) and FourDoor (car servicing) to focus on its core marketplace. Despite raising $450 million in 2021 at a $3.2 billion valuation from backers including SoftBank and Tencent, CARS24 reported a ₹500 crore loss in FY24.
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CarDekho: Operated by Girnar Software, CarDekho had been targeting an early 2025 filing but has now deferred IPO plans. Instead, the company is working on merging its insurance arm, InsuranceDekho, with RenewBuy, which could streamline its financials and broaden revenue streams.
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Spinny: Officially Valuedrive Technologies, Spinny has slowed its expansion drive and is currently seeking fresh capital to stabilize operations before pursuing an IPO.
Meanwhile, Droom, another used-car platform, has shifted its focus toward the premium and luxury segment after seeing revenues fall in the past two years. It has also cut costs and may refile IPO documents.
Investor Sentiment: A Test Ahead
The enthusiasm for Urban Company and the soaring stock of CarTrade Tech highlight that investor appetite exists. Yet, profitability remains the key question for upcoming issuers. Loss-making startups like CARS24 will need to demonstrate a credible path to financial sustainability before markets reward them.
Still, the macro backdrop is favorable. India’s auto market is expanding, consumers are increasingly shifting online, and digital-first brands are gaining acceptance on the stock exchange.
Credits: Inc 42
Conclusion: Revving Up for the Future
India’s used-car platforms are at a turning point. If CARS24, CarDekho, and Spinny can successfully restructure, stabilize operations, and present compelling growth stories, their IPOs could collectively raise $1 billion and redefine the auto-tech sector’s market dynamics.
In many ways, their listing journeys mirror the broader story of India’s new-age economy — bold, fast-growing, sometimes loss-making, but brimming with potential. For Dalal Street, the coming 18 months may bring the sound of engines roaring louder than ever.
