Pandemic the Game Changer, Cars24 to Double Its Valuation

The demand for used automobiles has increased since the onset of the pandemic.

Cars24 is a Gurgaon based start-up which recently joined the unicorn league. Cars24 is the biggest online marketplace in India for used vehicles

Spike in Website Traffic with the onset of the pandemic 

Cars24 reported a four-fold increase in their website traffic. It is astonishing that this increase began precisely with the start of the pandemic which clearly shows the increased demand for used vehicles during the pandemic. 

Upcoming funding deal valued at $250 M 

The company is working out a funding deal valued at $250 M backed by investors including DST Global. If successful, this deal could double Cars24’s site value between $1.6 M to $2B. 

Renewed interest towards pre-owned cars during the pandemic

The demand for used vehicles has spiked in India since people are afraid to take public transport. The second-hand vehicle market exploded during the pandemic. Since the spending thresholds have reduced for people from all walks of life, investing in a brand-new car has taken a backseat. There is also no concern regarding the status symbol which a pre-owned car might bring to the table. 

Business model of Cars24

Cars24 is aimed at easing the process of the used car, pre-owned motorcycles and scooters’ trade in India. Cars24’s business model is to price vehicles based on AI algorithms. The insights from the data will match the least troublesome car with its soon to be owner. 

Cars24 have their own reconditioning facilities where vehicles to be listed for sale will be refurbished. The refurbished vehicles can be returned within 7 days without the need to furnish a reason for the same. Each vehicle sold through Cars24 will enjoy a six-month long warranty period. The business model of Cars24 also includes customised financial services and vehicle lending products. 

Global expansion to new markets

The start-up is actively exploring new markets and has already set up base in Australia and the United Arab Emirates. They also have plans to stretch their presence in more middle eastern and southeast Asian markets. 

For 2021, the company has already set aside funds worth INR 738 Cr ($98 M) for expansion of its international operations. Through their global expansion, they want to cater to new and unique consumers across the world. 

Cars24 was particularly interested in the Australian market since the consumer base here loves cars and had never experienced a business model quite like Cars24 which made it simple to trade in pre-owned refurbished vehicles.

Future and Forecasting

Currently, Cars24 is operating 20 car studios in more than 10 locations. About 400 cars are being catalogued by the company each day. They have an assortment of more than 10,000 cars. 

For the year 2021, they have planned to establish 7 refurbishment workshops spanning an area of 50 acres in total. They also want to hit targets of 20,000 refurbished cars monthly. 


According to digital marketing agency AdLift, India's influencer market is pegged at $75-150 million a year, as compared to the global market of $1.75 billion.

What’s in it for me?

Since its inception, Cars24 has been a seller focused platform for used cars. But since then, they tactfully changed their stance from being a seller-focused to being a buyer-focused firm. They offered a fair incentive for customers who wanted to buy used automobiles from them based on a purely online experience. The incentive of a 7 day no-questions-asked return policy and the 6-month warranty sealed the deal for Cars24. 

While making the transition to a buyer-focused used car dealership, Cars24 had to shoulder the responsibility of logistics, in-house refurbishing via their own workshops. 

Their focus on doing quality checks of the vehicle through a 140-point inspection before sales has helped them find favour with customers. Cars24’s venture into the financing business in 2019 proved to be profitable to them since they reported earnings of INR 10 Cr ($1.3 M) purely from finance products and loan interest. 

Anju Nambiar
Anju Nambiar
Anju has 5 years of experience covering business. She writes on startups, business life cycle and startup ecosystem. Her stints include Amazon and Adjetter Media Network.



Please enter your comment!
Please enter your name here

Disclaimer: The opinions expressed by columnists are their own, not those of Dutch Uncles

If you wish to contribute or have a story suggestion,
email to [email protected]


Mastering Impactful Communication: Essential Skills for Aspiring...

Effective communication is the lifeblood of any successful organization,...

Navigating the Path to Impactful Leadership: From...

In the ever-evolving SME/Startup landscape, the distinction between managers...

B2B Aggregators Disrupting the FMCG Distribution

The independent grocery store colloquially known as the Kirana...