Indian used cars marketplace Cars24 registered an impressive 58 percent revenue growth in FY2017-18 but also incurred losses in the process.

Gurugram-based Cars24’s operating revenues for the year ending March 2018 stood at $92 million U.S. — up from $58 million the previous year. VC Circle reported that the company’s net losses increased from $10.5 million in FY2016-17 to $11 million this year.

Based on its filings with the Registrar of Companies (ROC), Cars24’s gross expenditure increased by 50 percent to $104 million — that’s $34 million more than the previous year. This was attributed to the bulk purchase of used cars, advertising, marketing, and employee benefits.

Cars24’s financials are usually reported with those of its Singapore-based parent company Global Carz Pte. Pvt. Ltd. The group’s other Indian business Cars24 Financial Services Pvt. Ltd. was only incorporated in October.

A company spokesperson said Cars24 remains upbeat about it revenue for the current fiscal year. “The used car market is 1.25 times bigger than the new car market, and with four million used cars, the market saw sales worth $25 billion last year. This underlines the immense opportunity for a transaction-based business like Cars24.”

The company raised $50 million in a funding round led by Sequoia Capital, Kingsway FCI Fund and KCK Global in July. Sequoia is also an existing investor in CarDekho, Cars24’s competitor in the used cars market.

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