Cars24 Posts Rs 5,500 Crore Revenue In 2022–23; Loss Halves

Revenue of pre-owned vehicles marketplace Cars 24 remained largely flat in the last financial year although its loss declined by more than half.

The unicorn posted a consolidated revenue from operations of Rs 5,535 crore, up around 8% from Rs 5,136 crore in fiscal 2022. However, its loss narrowed from Rs 1,093.1 crore to Rs 467.8 crore. Its total operating expenditure also reduced from Rs 1,155.3 crore to Rs 946.7 crore on the back of reduced promotional expenses.

"We have substantially reduced our advertising expenses even as we maintain consistent growth," Gajendra Jangid, co-founder of Cars24, said. "In the used car category, we've attained the highest level of brand awareness, powered by strong word-of-mouth that has enabled us to cut down on our marketing expenditure."

"By solving for process efficiency, automation and implementing these changes across the organisation, we've achieved substantial cost reductions," he said. "These cost savings, in turn, have allowed us to reallocate resources to areas such as technology development, ensuring we're well-positioned for the long-term."

The Gurugram-based startup's NBFC arm, Cars24 Financial Services Pvt., grew faster than the core business. Its revenue grew from Rs 86.6 crore to Rs 163.4 crore and also posted a marginal profit.

"Earlier this year, Cars24 Financial Services has also achieved an astounding 100% year on year growth in enabling loan disbursements and has surpassed the remarkable milestone of enabling disbursals worth Rs 2,000 crore since its inception," Jangid said. "This jump is driven by the ease and accessibility of car financing becoming key drivers in attracting more young individuals who are seeking financial flexibility and a hassle-free car ownership experience."

Cars24 is already exhibiting a "strong performance" in the first half of fiscal 2024 and the business is expected to turn profitable in the coming years, he said.