Cars24 reports 10% revenue decline in FY25; losses rise marginally

Following a 25% year-on-year growth in FY24, used car platform Cars24 India’s operating scale declined 10% in the fiscal year ended March 2025. During the same period, the firm’s net losses also increased 9% to Rs 543 crore. 

Cars24 India’s gross revenue fell to Rs 6,233 crore in FY25 from Rs 6,910 crore in FY24, according to the company’s consolidated financial statements filed with the Registrar of Companies (RoC).

The sale of cars through the auction business and retail contributed approximately 92% of the total revenue. This income declined by 11% year-on-year to Rs 5,733 crore in FY25 from Rs 6,432 crore in FY24.

Income from financial services, largely interest on loans, stood at around Rs 215 crore during the period. This income came mainly from Loans24, the lending vertical of CARS24, which provides third-party loans.

The rest of the income earned through service fees, parking fees and the sale of other services including insurance assistance and warranties. 

The Gurugram-based company also recorded Rs 125 crore in non-operating income in the previous fiscal from interest on bank deposits, commercial papers, debentures, and other sources. This pushed cars24 India’s total income to Rs 6,358 crore for the year.

Cars24’s holding company is registered in Singapore and controls 12 subsidiaries across India, Australia, the UAE, and Thailand. The financials of the Singapore-based holding entity may vary from those reported by the Indian entity in filings with the Registrar of Companies (RoC).

For the pre-owned vehicle seller, procurement of cars remained the largest cost centre and accounted for 81% of the total expenses. In line with lower scale, this cost declined 9% to Rs 5,555 crore in FY25.

Employee benefits expenses rose 15% to Rs 604 crore in the previous fiscal and included Rs 36.5 crore towards ESOP costs. Meanwhile, spending on marketing and advertising declined 25% to Rs 106 crore.

Its Technology, legal, broker commissions, impairment loss on financial assets, and other overheads took the company’s total expenditure to Rs 6,898 crore in the last fiscal year, down from Rs 7,488 crore in FY24.

The 10% decline in CARS24 India’s operations led to wider losses, which rose 9% year-on-year to Rs 543 crore in FY25 from Rs 498 crore in FY24. Its ROCE and EBITDA margin worsened to -21.13% and -6.77% respectively.

On a unit level, the company spent Rs 1.11 to earn one rupee of operating revenue in FY25. As of March 2025, Cars24 India reported current assets of Rs 1,988 crore, which includes Rs 155 crore in cash and bank balance.

The SoftBank-backed company claimed an 18% year-on-year increase in adjusted net revenue to Rs 651 crore in the first half of FY26, while its adjusted EBITDA loss declined 36% YoY to Rs 162 crore.

CARS24recently acquired vehicle information and management platform CarInfo. This is the second acquisition within a year, following its takeover of automotive community platform Team-BHP.

Cars24 has not raised external funding in the last three years. In December 2021, the company raised $450 million at a valuation of $3.3 billion. Its major investors include Alpha Wave, SoftBank, Tencent, and DST Global.