Cars24 lays off around 200 employees, company says, 'This is a tough decision...'

Cars24, the leading online marketplace for used vehicles, has laid off around 200 employees across its product and technology divisions as part of a broader organisational restructuring aimed at streamlining operations.

The decision comes as the company faces growing competition in the used-car market, with rivals like Spinny recently raising $131 million in fresh funding from Accel's Leadership Fund.

Cars24 says, "This is a tough decision"

Confirming the development, Cars24 co-founder and CEO Vikram Chopra said, “This is a tough decision. Over the past few weeks, we've had to part ways with around 200 employees across various functions. We are deeply grateful for their contributions. The layoffs are not about performance, but about structure and the bets we placed.”

Chopra added, “We've learned that speed without clarity is expensive, and some projects and roles were added prematurely. Moving forward, we need to be more strategic and deliberate with our investments and team-building.”

According to media reports, the SoftBank-backed company provided standard severance packages to affected employees.

Offerings and funding

Cars24 continues to offer a wide range of services, including buying and selling of pre-owned cars, financing, insurance, driver-on-demand services, FASTag, challan management, and vehicle scrapping. In December 2021, the company secured $450 million in funding from investors such as SoftBank, Tencent, DST Global, and Alpha Wave.

While the company's FY25 numbers are awaited, Cars24 reported a 25% increase in revenue to Rs 6,917 crore in FY24, up from Rs 5,530 crore in FY23. However, it also posted a net loss of Rs 498 crore and an adjusted EBITDA loss of Rs 318 crore during the same period.

The development comes days after it acquired auto forum Team-BHP, which will continue to operate independently. The company also launched Fourdoor, a multi-brand car servicing platform, and a ‘New Cars’ business offering AI-enabled experiences and home test drives.