Cars24 lays off around 200 employees
New Delhi: Autotech platform Cars24 has laid off around 200 employees as part of a restructuring exercise to meet its long-term goals. The e-commerce platform for pre-owned vehicles said it is a ‘difficult moment’.
Cars24 co-founder and CEO Vikram Chopra said in a blog post, “Over the last few weeks we have had to make the difficult decision to part ways with nearly 200 of our colleagues. Each person affected gave their time, energy and trust to this company. It means a lot and we are truly grateful to them.”
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He dismissed the decision as a cost-cutting exercise, saying, “It is about aligning the team and structure with our long-term goals and fixing where we have lost focus.” Cars24 offers a range of services, including buying and selling used cars, financing, insurance, driver-on-demand.
Chopra further said that in the last few months, “we realized that some projects delivered less than we expected. Some roles were added too quickly. Some hypotheses did not hold up during testing and in some cases, we were not able to provide the kind of growth or learning that people really deserve.” He added that there is no scope for any layoffs at this time as this was a typical reset and not the start of a rolling plan.
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For those affected, the company is providing resume and LinkedIn support, mentorship, emotional wellness resources and access to open roles within its network. The online pre-owned car retailer platform reported a loss of Rs 498 crore in FY24 as against Rs 468 crore in FY23, a growth of 6.4 per cent.
According to the company’s financial data, the company’s expenditure increased by 23.3 percent year-on-year to Rs 7,461 crore in FY 2023 from Rs 6,053 crore in FY 2023.
The company’s income grew by 25.1 percent to Rs 6,917 crore from Rs 5,530 crore in FY 2023. Income from car sales grew 24 percent to Rs 6,400 crore in the last fiscal from Rs 5,164 crore in FY 2023. In December 2021, the company raised $450 million at a valuation of $3.3 billion. Its major investors include Alpha Wave, SoftBank, Tencent and DST Global, among others.
