CARS24, the online used-car platform, is gearing up for an initial public offering (IPO) as it sets its sights on the next growth phase within the domestic market. Co-founder Gajendra Jangid recently confirmed the company’s plans, highlighting the strategic move to capitalise on emerging opportunities.
The Gurugram-headquartered firm, which has already crossed USD 1 billion in turnover, expects the domestic used-car market to cross USD 100 billion mark over the next ten years.
“IPO is a milestone and a stepping stone in our journey. We are gearing up for it internally. I am not laying any roadmap for… when we will go for the IPO. But the progress is being made in that direction,” Jangid said.
Elaborating on the growth potential of the Indian used-car market, he stated that car ownership in the country remains low as compared to various developed geographies including China and the US.
Jangid noted that the used-car segment was growing faster than the new car sales in the country with strong demand emanating from Tier II and III cities and towns.
He noted that the company has yet to reach a break-even level and focuses on introducing new products and technologies and scaling new business verticals like car servicing and sales of accessories and spare parts.
CARS24 said it had upgraded its app to revolutionise car ownership, seamlessly integrating a wide range of services under one roof.
“We’re not just transforming car transactions; we’re elevating them into experiences,” Jangid said.
Why Companies Launch IPO?
Companies launch IPOs in India primarily to raise capital for expansion, reduce debt, and fund new projects. Going public enhances a company’s visibility and credibility, making it more attractive to investors, customers, and employees.
An IPO also provides liquidity for early investors and helps establish a market-driven valuation, which can be useful for future fundraising or acquisitions.
Additionally, the increased regulatory oversight that comes with being a publicly listed company can improve corporate governance. In a growing economy like India’s, an IPO can be a strategic move to capitalise on emerging growth opportunities.
