Cars24 deepens Australia push ahead of India IPO plan

Cars24 has increased investment in Australia as it considers a potential initial public offering in India within the next 6-12 months, subject to market conditions and regulatory approvals.

The used-car group operates in Australia, India and the UAE. It is prioritising Australia as more buyers shift to the secondary market and expectations rise around transparency and consumer protections in used-car transactions.

In Australia, Cars24 is building an end-to-end model covering inspection and pricing, financing, delivery and returns. It contrasts this with listing-led marketplaces that focus on vehicle discovery and simply connect buyers and sellers.

Australia focus

Cars24 says it is applying lessons from overseas markets it describes as operationally mature. In the UAE, it says the business became profitable within its first 1,000 days and delivered about 24% retail margins with positive Adjusted EBITDA.

It argues that performance supports its Australian strategy, describing local investment plans as long term and tied to demand for trust and accountability in used-vehicle purchases.

Cars24 is also building what it calls a full ownership ecosystem, designed to reflect local consumer expectations, regulatory requirements and evolving trust standards.

Products and process

In Australia, the group offers CredMate, a Cars24-owned financing product developed specifically for the local market.

It also highlighted inspection-led inventory and Car History Reports, designed to meet local compliance standards and consumer expectations around transparency.

The Australian operation includes a $600,000 operations and logistics hub in Western Sydney, intended to improve delivery speed and enable industrial-scale refurbishment.

Cars24 has been investing in local infrastructure as it expands in major cities including Melbourne, Brisbane and Sydney. The business maintains a national stock of pre-vetted vehicles and offers a seven-day return policy and a three-month warranty.

Financial updates

Cars24 linked its Australia expansion to improving financial performance across the group. For the first half of FY26, it reported Adjusted Net Revenue of about ₹651 crore, up 18% year on year.

It also reported a 36% reduction in Adjusted EBITDA loss to ₹162 crore. Retail gross merchandise value exceeded ₹2,000 crore and contributed more than half of total GMV.

Cars24 said higher-margin value-added services and captive financing improved profitability per vehicle. It added that Vehicle Ownership Services and Non-Captive Financing have been growing quickly, contributing high-margin, asset-light revenue streams alongside core vehicle transactions.

Operating expenditure has remained broadly flat as the business has scaled, which it attributed to operational efficiencies driven by its in-house technology and AI stack. Marketing spend in India fell by about 33% without affecting engagement growth.

In Australia, Cars24 reported revenue growth of 22% year on year, which it linked to momentum as it scales its end-to-end model locally.

Cars24 expects the second half of FY26 to exceed ₹750 crore in Adjusted Net Revenue, implying about 35% year-on-year growth.

IPO window

Cars24 is evaluating a potential public listing in India within the next 6-12 months. Any decision would depend on market conditions and regulatory approvals.

The comments come as investor interest returns for larger digital marketplaces, particularly those with clearer routes to profitability. Cars24 is pointing to performance updates from its international operations to highlight progress on unit economics and operating discipline.

Brand change

Cars24 is rolling out a brand refresh in Australia, shifting from its earlier all-caps CARS24 identity to Cars24.

It says the change reflects its maturity in the Australian market and signals a move towards "greater clarity, simplicity and purpose".

Cars24 said it has expanded inspection standards, strengthened financing products and added customer protections over time, and that the updated identity mirrors that development.

"Australia is a key market in our long-term strategy," said Mehul Agrawal, cofounder of Cars24. "We've proven the model globally and are now applying those learnings to build something deeper and more durable in Australia."

Cars24 said its next phase in Australia will focus on reaching national scale through local infrastructure and a broader set of services spanning vehicle transactions, financing and ownership-related products.