Kunal Mundra, who was appointed CEO of Cars24 in February 2021, has announced his imminent exit from the India-based used-car marketplace.
In an announcement on LinkedIn, Mundra said: “After an incredible stint at Cars24, I will be handing back the reins to Vikram [Chopra] and Mehul [Agrawal] over the next couple of months.” He also shared an excerpt from the internal mail he sent to employees at Cars24. An alumnus of the Indian Institute of Management, Bengaluru, (IIM-B), Mundra joined the company after stints at Ceat Tyres and Bain Capital Private Equity.
Cars24 has not formally announced Mundra’s departure. In his stead, co-founders Vikram Chopra and Mehul Agrawal are expected to take on added responsibilities until a successor is found. Mundra’s exit was preceded by a sluggish period marked by rumours of mass layoffs and a halt to the company’s aggressive expansion. Cars24 ventured into the Gulf and Southeast Asia in 2021.
The company’s revenues grew by 116% year on year in FY21-22 (the financial year ended March 31, 2022) to $729 million U.S. However, losses continued to mount, rising by 29.5% year on year, as expenses increased to $760 million, up by 110% year on year.
Founded in 2015, Cars24 was initially a b-to-b marketplace, purchasing used cars from customers, but later expanded to a c-to-b-to-c model, offering customers the opportunity to buy and sell second-hand motors online. The company also acquired a non-banking financial company (NBFC) license in 2020 for its financial services, and later ventured into the motorcycle business. It has raised about $1.3 billion so far and is valued at $3.3 billion.