Launch · Commerce & Consumer Brands

Cars24 commits $20M to AI arm Cars24 Labs

What they do

Cars24 is a platform to buy and sell used cars, also offering loans and new cars

It committed $20 million to Cars24 Labs, an AI build, partnership and investment arm

The company plans to go public within six to 12 months and is shifting its domicile to India

Cars24 committed $20 million to a new AI arm called Cars24 Labs.
Cars24 Labs will develop AI-native products and open-source models.
It will partner with leading AI companies and back early-stage startups with capital and infrastructure.
Partners include OpenAI, ElevenLabs and Amazon Web Services.
Founder and CEO Vikram Chopra called it the biggest bet the company has made.
Co-founder and COO Mehul Agrawal stepped down from his executive role.
Co-founder and CMO Gajendra Jangid also stepped down from his executive role.
India used-car business CEO Himanshu Ratnoo stepped down from his executive role.

AI-powered inspections have reduced vehicle inspection times from about 60 minutes to 15 minutes.
AI handles more than 1.5 million minutes of customer calls per month across seven languages.
AI also supports audits at Cars24 retail hubs.
The company plans to go public within six to 12 months (as of January 2026).
Cars24 is shifting its domicile from Singapore to India before the IPO.

Cars24 lets users buy and sell used cars online.
It also offers car loans, new cars and challan (traffic fine) services.
The used-car market in India is estimated at $200 billion.
Adjusted net revenue in FY26 was ₹1,411 crore, up 27%.
Adjusted EBITDA loss in FY26 was ₹200 crore, narrowed from ₹475 crore a year earlier.
The company posted its first adjusted EBITDA-profitable quarter in Jan-Mar 2026 with ₹20 crore adjusted EBITDA.
Adjusted net revenue in H1 FY26 was ₹651 crore, up 18% year-on-year.
Adjusted EBITDA loss in H1 FY26 was ₹162 crore, trimmed 36% year-on-year.

Product: An online platform for used-car buying, selling, and related lending services.
Customers: Consumers and dealers transacting in used cars.
How it makes money: It earns from vehicle sales, marketplace transactions, and financing-related services.
What sets it apart: Uses AI to improve operating efficiency and support growth.
Operations: Operates across multiple countries and runs auction and retail businesses in India.