Cars24 Eyes April 2027 Reverse Flip Ahead Of IPO Filing

Used-car marketplace Cars24 expects to complete its reverse flip from Singapore to India by April 2027, following which it plans to file its DRHP for an IPO.

Cars24 CFO Shivanshu Makkar told PTI that the startup has received approval from Singapore to redomicile and is filing the required papers in India. He expects the process to take six to nine months.

“After the day we become an Indian entity is when we can file the DRHP. So, by April, we would be eligible to file a DRHP,” Makkar told PTI.

Once the DRHP is filed, the IPO process could take another three to four months, including SEBI approvals, pricing and book-building, he added.

The latest timeline extends beyond the window outlined by cofounder and CEO Vikram Chopra in January, when he said Cars24 was looking to go public within six to twelve months.

Makkar said Cars24 has not raised fresh capital since it raised $400 Mn in its Series G round at a $3.3 Bn valuation as it has sufficient cash on its balance sheet and does not need cash to burn. He added that there is no valuation target at present and that he did not view an IPO as an end goal or valuation exercise.

The CFO said the listing would provide liquidity to existing shareholders and employees, while giving the company an opportunity to strengthen its corporate governance as a listed entity.

Primary capital raised from the IPO would allow the company to create a war chest to go deeper into the Indian market, which has sufficient headroom for expansion owing to low car ownership figures in the country. 

“The tailwind and headroom both are insane. So, to go into newer cities, I’m right now in 25 cities in retail. Maybe I go to 200 cities and about 50,000 cars. So, for that, the primary capital would be used,” Makkar said.

The startup is also looking to expand further in the Gulf countries and Australia. Makkar said Cars24 has around a 7% share of the UAE’s used-car market and is growing at nearly 30% there. In Australia, it has expanded to three cities. 

Cars24’s Profitability Push 

Founded in 2015 by Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal, Cars24 operates an online marketplace for buying and selling used cars. It also offers financing, insurance support, warranties and other related services. It also entered the market for buying new cars last year.

It has raised over $1.3 Bn to date from investors such as SoftBank, Alpha Wave Global, and Peak XV Partners.

Cars24’s India entity reported an 18.3% YoY decline in operating revenue to ₹5,091.7 Cr in FY26 from ₹6,233.2 Cr in FY25. Its net loss, however, narrowed 18.7% YoY to ₹441.1 Cr during the year from ₹542.7 Cr in FY25.

Cars24 had earlier said it turned adjusted EBITDA profitable in Q4 FY26, reporting adjusted EBITDA of ₹20 Cr for the quarter.

Cars24 moved from an inventory-based model to a commission-based one in its wholesale business in mid-FY26. As a result, it now recognises the commission earned on transactions rather than the entire value of vehicles sold.

Cars24’s proposed listing comes as other major players in India’s used-car and online auto marketplace space prepare to tap the public markets.

Gurugram-based Spinny confidentially filed its IPO papers with SEBI earlier this month to raise ₹2,500 Cr to ₹3,000 Cr through a combination of a fresh issue and an offer for sale (OFS), with a potential listing targeted for 2027.

CarDekho’s parent Girnar Software is also preparing for an IPO of up to ₹3,500 Cr.

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