Cars24, the prominent online platform for pre-owned vehicles, has recently let go of approximately 200 employees from its product and technology teams. This move is part of a larger reshuffling effort aimed at refining operations and ensuring smoother efficiency.
The layoffs come at a time when the used-car market is becoming increasingly competitive, with rivals such as Spinny attracting fresh investments — including a significant $131 million from Accel’s Leadership Fund.
In a statement addressing the cuts, Cars24’s co-founder and CEO Vikram Chopra described the decision as “difficult,” emphasizing that the layoffs were not performance-related, but rather part of a strategic restructuring. “We are incredibly grateful for the contributions of those affected,” Chopra said. “We’ve learned that moving quickly without a clear direction can be costly, and in some cases, roles and projects were introduced too soon. Going forward, we plan to be more methodical with how we expand and build our team.”
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The company, which is backed by SoftBank, has provided the laid-off employees with standard severance packages.
While navigating this internal change, Cars24 continues to offer a broad spectrum of services, including vehicle buying and selling, financing, insurance, FASTags, challan management, driver-on-demand, and vehicle scrapping. In late 2021, it secured $450 million in funding from key investors such as SoftBank, Tencent, and DST Global.
Although the company has yet to release its figures for FY25, its revenue grew by 25% in FY24, reaching Rs 6,917 crore, up from Rs 5,530 crore the previous year. Despite this growth, it reported a net loss of Rs 498 crore and an adjusted EBITDA loss of Rs 318 crore.
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In addition to the layoffs, Cars24 recently made headlines with its acquisition of auto forum Team-BHP, which will maintain its independence. The company has also rolled out several new initiatives, including Fourdoor, a multi-brand car servicing platform, and a new ‘New Cars’ business that promises AI-powered experiences and home test drives.
