Cars24 Lays Off 200-250 Employees Amid Cost-Cutting Push Despite these setbacks, Cars24 provided standard severance packages to affected employees.
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Cars24, the e-commerce platform specialising in pre-owned vehicles, has laid off between 200 and 250 employees this month as part of a major cost-cutting measure, according to a report by Entrackr. The layoffs primarily impacted the product and technology verticals.
"Cars24 has laid off around 250 employees this month across its product and technology verticals," said a source familiar with the matter, requesting anonymity.
The move comes at a challenging time for Cars24, as its key competitor Spinny recently secured over USD 131 million in fresh funding from Accel's Leadership Fund, which backs select global portfolios.
Despite these setbacks, Cars24 provided standard severance packages to affected employees. "This is a tough decision," said Vikram Chopra, Co-founder and CEO of Cars24, in a statement to Entrackr. "Over the past few weeks, we've had to part ways with around 200 employees across various functions. We are deeply grateful for their contributions. The layoffs are not about performance, but about structure and the bets we placed. We've learned that speed without clarity is expensive, and some projects and roles were added prematurely. Moving forward, we need to be more strategic and deliberate with our investments and team-building."
Cars24, which offers a broad suite of services including financing, insurance, FASTag issuance, challan management, and scrapping, has not raised external funding in the past three and a half years. However, it last secured USD 450 million in December 2021 from investors such as SoftBank, Tencent, DST Global, and Alpha Wave, valuing the company at USD 3.3 billion.
According to startup data platform TheKredible, DST Global is Cars24's largest external stakeholder, followed by KCK Limited, Peak XV, and Tencent.
In FY24, Cars24 reported a 25% year-on-year revenue growth to INR 6,917 crore but posted a net loss of INR 498 crore.
