'Structural adjustment, not performance': Why Cars24 laid off 250 employees
What's the story
Cars24, an e-commerce platform for pre-owned vehicles, has laid off approximately 250 employees.
The layoffs are largely focused on the product and technology side of the company.
The move comes as part of the company's larger cost-cutting strategy. Vikram Chopra, the co-founder and CEO of Cars24, confirmed these layoffs in a statement to Entrackr.
Adjustments
Strategic shift amid industry competition
Chopra clarified that the decision to lay off employees wasn't performance-related but a structural adjustment.
He said, "The layoffs are not about performance, but about structure and the bets we placed."
The announcement comes at a time when Cars24's competitor Spinny has secured $131 million in funding from Accel's Leadership Fund.
Funding journey
Cars24's funding history
Despite not raising any outside funding in the last three years, Cars24 had raised $450 million in December 2021 from investors including SoftBank, Tencent, DST Global, and Falcon Edge's Alpha Wave.
The round had valued the firm at $3.3 billion.
According to data platform TheKredible, DST Global has the largest external stake in Cars24 followed by KCK Limited.
Performance
Financial results for FY24
In fiscal year 2024 (FY24), Cars24 posted a 25% year-on-year growth in revenue from ₹5,530 crore in FY23 to ₹6,917 crore.
However, despite the growth, the firm posted a net loss of ₹498 crore and an adjusted EBITDA loss of ₹318 crore during the same period.
The company's financials for FY25 are yet to be revealed.