Cars24 India loss widens to Rs 543 crore in FY25; revenue falls 10%

Used car marketplace Cars24 reported a contraction in scale and wider losses for the financial year ended March 2025, even as early indicators for FY26 suggest operational stabilisation.

According to its consolidated financial statements filed with the Registrar of Companies, Cars24 India’s gross revenue declined 10% to Rs 6,233 crore in FY25 from Rs 6,910 crore in FY24. This comes after the company had recorded 25 percent year-on-year growth in FY24.

Revenue from the core business of auction and retail sale of vehicles, which accounted for approximately 92 percent of total revenue, fell 11% to Rs 5,733 crore in FY25 from Rs 6,432 crore a year earlier. The moderation was largely attributed to a slowdown in auction and retail transactions.

Income from financial services stood at around Rs 215 crore during the year. This was driven primarily by Loans24, the company’s lending vertical that facilitates third-party loans. Additional income was generated through service fees, parking fees, insurance assistance and warranty services.

The Gurugram-based firm also recorded Rs 125 crore in non-operating income, largely from interest on bank deposits, commercial papers and debentures. This took its total income to Rs 6,358 crore for FY25.

Cars24’s holding company is registered in Singapore and oversees 12 subsidiaries across India, Australia, the UAE and Thailand. Financials reported by the Singapore-based holding entity may differ from the Indian entity’s filings.

On the cost side, procurement of vehicles remained the largest expense, accounting for 81% of total costs. In line with the lower operating scale, procurement expenses declined 9% to Rs 5,555 crore in FY25. Employee benefits expenses increased 15% to Rs 604 crore, including Rs 36.5 crore towards ESOP costs. Marketing and advertising expenditure fell 25% to Rs 106 crore.

Technology, legal costs, broker commissions, impairment loss on financial assets and other overheads pushed total expenditure to Rs 6,898 crore in FY25, down from Rs 7,488 crore in the previous year.

Despite lower overall spending, the decline in revenue led to wider losses. Net loss rose 9% year-on-year to Rs 543 crore in FY25 from Rs 498 crore in FY24. Return on capital employed stood at negative 21.13%, while EBITDA margin deteriorated to negative 6.77%. On a unit basis, the company spent Rs 1.11 to earn one rupee of operating revenue.

As of March 2025, Cars24 India reported current assets of Rs 1,988 crore, including Rs 155 crore in cash and bank balances.

However, early FY26 performance indicates a potential turnaround. The company said adjusted net revenue rose 18% year-on-year to Rs 651 crore in the first half of FY26, while adjusted EBITDA loss narrowed 36% to Rs 162 crore.

Operationally, Cars24 has shifted focus towards retail transactions, with retail contributing more than half of vehicle gross merchandise value. Its lending business has also expanded, with loan disbursements rising 38%. Internationally, the company reported transactions in the UAE and Australia.

In recent months, Cars24 has pursued inorganic growth. It acquired vehicle information and management platform CarInfo and earlier took over automotive community platform Team-BHP. These mark two acquisitions within a year as the company looks to deepen its ecosystem.

The SoftBank-backed firm has not raised external funding in the past three years. In 2021, it secured $450 million at a valuation of $3.3 billion. Its key investors include Alpha Wave, SoftBank, Tencent and DST Global.