Used car marketplace CARS24 reported a 10% decline in operating revenue in FY25, reversing the 25% growth recorded in the previous fiscal. The Gurugram based company also saw its net losses widen 9% year-on-year.
According to consolidated financial statements filed with the Registrar of Companies (RoC), Cars24 India’s gross revenue fell to ₹6,233 crore in FY25 from ₹6,910 crore in FY24.
Core Vehicle Sales Decline
Revenue from vehicle sales across auction and retail segments accounted for nearly 92% of total income and declined 11% to ₹5,733 crore in FY25.
The company also generated approximately ₹215 crore from financial services income, primarily through Loans24, its lending vertical that facilitates third-party vehicle loans. Additional income came from service fees, insurance assistance, warranties, and parking charges.
Cars24 recorded ₹125 crore in non-operating income from interest on deposits, commercial papers, and other instruments, taking total income to ₹6,358 crore for the year.
Cost Structure and Losses
Procurement of vehicles remained the largest expense, accounting for 81% of total costs. In line with lower sales volumes, procurement expenses declined 9% to ₹5,555 crore.
Employee benefit expenses rose 15% to ₹604 crore, including ₹36.5 crore in ESOP costs. Marketing and advertising spend dropped 25% to ₹106 crore. Technology, legal, broker commissions, impairment losses, and other overheads pushed total expenditure to ₹6,898 crore, down from ₹7,488 crore in FY24.
Despite lower overall expenses, losses increased to ₹543 crore in FY25 from ₹498 crore in FY24. EBITDA margin deteriorated to -6.77%, while ROCE stood at -21.13%. On a unit basis, the company spent ₹1.11 to earn one rupee of revenue.
Strategic Moves and Outlook
Cars24’s holding company is registered in Singapore and oversees operations across India, Australia, the UAE, and Thailand. The SoftBank backed firm recently acquired vehicle information platform CarInfo, following its earlier acquisition of Team BHP.
While the company reported an 18% rise in adjusted net revenue in H1 FY26, profitability remains a challenge in India’s competitive pre-owned car market.
Follow Startupbydoc for daily startup insights, funding news, IPO analysis, and business breakdowns.