Cars24: Revving Up the Used Car Market with Digital Innovation and Expansion
August 8, 2025
Industry: Automobiles, Used car market
CARS24 currently holds the highest valuation in the used car space, estimated at $3.3 billion, through their customer-first approach that ensures a hassle-free used car buying experience, and stress-free ownership experience, backed by market-leading 3 year warranties, easy returns, and CARE+ packages that enhance peace of mind especially for first time buyers. Likewise, Spinny has also captured a fair chunk of the market with its D2C-only model, valued at $1.6 billion, along with OLX, and Droom, which leverage broader marketplaces and data analytics.
Business Model
CARS24 allows verified dealers and individuals to list used cars only after stringent identity and business verification (contrary to other marketplace models), ensuring buyers get broader access without compromising on transparency or peace of mind. Beyond buying & selling used cars, CARS24 has evolved into a complete car ownership ecosystem, offering fully digitised services including e-challan, car pre-delivery inspectionI, vehicle service history, FASTag, and easy financing options, all through a single platform.
Valuation and Financial Standing
CARS24’s current market value as of 2025 is estimated to be around $3.3 billion, establishing them among the leaders in the used car space, with customer-first processes backed by technological innovations, driving excellence in the used car space.
Competitors
Cars24 faces competition from various quarters, including traditional used car dealerships, online classified platforms, and other specialized used car platforms. Key competitors include CarMax, AutoTrader, and newer startups that have entered the online used car marketplace. Each competitor presents a unique challenge in terms of market share, technological innovation, and customer loyalty.
Investors and Funding
Cars24 has attracted investments from a range of prominent investors. Some of the notable backers include DST Global, SoftBank Vision Fund 2, Alibaba, Tencent, Moore Strategic Ventures, Exor Seeds, Raptor Group, and others. These investors have played a significant role in the company’s growth and expansion. The Series G equity round was led by Alpha Wave Global (formerly known as Falcon Edge Capital), with participation from other existing investors.
This diverse group of investors reflects the strong confidence in Cars24’s business model and its potential for continued growth in the used car market, both in India and internationally. Their support has been crucial in enabling Cars24 to enhance its technology, expand its market reach, and strengthen its position in the competitive used car marketplace.
Founders and Leadership
Cars24 was founded by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal, and Gajendra Jangid. These founders combined their expertise and vision to create a disruptive model in the used car market, leveraging technology to streamline the buying and selling process. Their diverse backgrounds have contributed significantly to the company’s innovative approach and subsequent success.
Customer Experience and Trust
CARS24 offers the most flexible return policy in the market of 7-days, along with up to 3 years warranty plan in its Care+ package that covers the most components in the industry, & also includes RSA, Buyback & Annual servicing at the same cost. Unlike inbuilt warranty plans that are part of fixed prices, CARS24 lets used car buyers choose what works best for them in an attempt to become the most cost effective option for a used car buyer. CARS24’s trust proposition is further backed by a rigorous 300-point inspection to ensure transparency and peace of mind for second hand car buyers
Innovation and Technology
CARS24 puts technology at the heart of its operations to deliver a truly superior customer experience. Every stage—from AI-driven pricing, online loan approvals, rigorous 300-point inspection and vehicle info checks to RC transfer tracking—is seamlessly tech-enabled to ensure maximum transparency, trust, and speed across every transaction.
Recent Developments
In recent years, Cars24 has expanded its geographical footprint, entering new markets both domestically and internationally. The company has also invested heavily in technology, particularly in AI and machine learning, to improve the car valuation process and enhance customer experience. Strategic partnerships with financial institutions have enabled it to offer attractive financing options to buyers, further driving sales.
Key Insights
- Cars24’s hybrid business model is a significant differentiator in the used car market.
- The company’s valuation and investor confidence highlight its strong market position.
- Technology and customer-centric approaches are central to Cars24’s growth strategy.
- Expansion into new markets and strategic partnerships are pivotal for future success.
