Cars24's revenue from operations rises 25% to Rs 6,917 crore in FY24

Cars24, an auto-tech platform for pre-owned vehicles, saw its revenue from operations jump by 25 per cent, reaching Rs 6,917 crore in FY2023-24, compared to Rs 5,530 crore the year before.

 

“This was driven by an increase in unit sales and the average selling price per car. We sold more than 200,000 cars last year, the highest annual sales in our history,” said Ruchit Agarwal, co-founder, Cars24.

 

Other key contributors included income from the financial services arm, service fees, parking charges, and the sale of value-added services such as insurance assistance and warranties.

 

While purchases (adjusted for inventory changes) grew by 24 per cent, keeping pace with revenue, the company improved its gross margins, which climbed to Rs 810 crore (11.7 per cent of revenue), up from Rs 599 crore (10.8 per cent of revenue) last year, driven by better margins on sales and incremental income from financial and value-added services.

 

 

“Adjusted Ebitda improved by 19 per cent to Rs -319 crore from Rs -392 crore, driven by an increased top line and better gross margins, offset by investments in technology, data science, and customer experience enhancements for future growth,” said Agarwal.

 

IT costs grew by 18 per cent, while employee costs (excluding ESOPs) rose by 8 per cent, as Cars24 worked on developing its "super app"—a one-stop solution for every need in the car ecosystem that will unify its customer base and enhance the overall experience. The company exercised stringent cost control across other areas, such as marketing expenses, which were reduced by 13 per cent.

 

Building on its FY2024 results, Cars24 said it aims to drive profitable growth by leveraging technology, digital innovation, and data science. It also plans to expand its service portfolio to offer seamless solutions across the car ownership lifecycle. Additionally, the company intends to continue cost optimisation to further reduce Ebitda losses in FY2025.