IPO-bound CARS24 sharpens focus on profitability

Digital automotive marketplace CARS24 is gearing up for an initial public offering (IPO) that could be announced within the next 12 to 18 months, as the company sharpens its focus on profitability, growth, and market share in India’s used-car segment. According to reports by Business Today, the company’s leadership has confirmed that IPO preparations are actively underway.

Despite facing short-term disruptions due to recent policy changes, CARS24 remains optimistic about the long-term potential of India’s used-car market. The company believes that the gradual shift from an unorganised ecosystem to organised digital platforms will continue to create significant growth opportunities.

A recent reduction in GST on new cars created temporary pressure on the business, as prices of new vehicles fell while CARS24 was holding inventory acquired at higher price levels, impacting margins in the short term. However, the company noted that the impact was brief, with December emerging as its strongest month for profitability.

Looking ahead, CARS24 expects structural changes in the used-car industry to work in its favour. The company currently commands the largest market share among organised players and is targeting a market share of around 10% over the next three to four years. While the overall used-car market is expanding at a rate of 10–12%, CARS24 aims to grow at nearly twice that pace.

The company’s improving focus on unit economics is reflected in its financial performance. In the first half of FY26, CARS24 reported an 18% year-on-year rise in adjusted net revenue to ₹651 crore, even as vehicle transaction GMV remained largely flat. During the same period, adjusted EBITDA losses narrowed by 36% year-on-year to ₹162 crore, highlighting improved operational efficiency.

Operationally, CARS24 facilitated nearly 85,000 car transactions across India, the UAE, and Australia in H1 FY26 and is on track to cross 1.8 lakh transactions for the full financial year.

As CARS24 moves closer to its IPO, its strengthening financial metrics, emphasis on profitability, and ambition to outpace industry growth position it as one of India’s leading auto-tech platforms. With increasing investor interest in online automotive listings, including CarTrade, attention on the sector is expected to remain strong in the months ahead.