India-based used-car marketplace Cars24 has launched its first engineering research and development center in Bengaluru.
According to a news release, the R&D facility will focus on developing tools for the inspection, refurbishment and reconditioning of used vehicles, with a team led by Marut Singh, chief technical officer, and Anmol Singh, vice president of engineering. AI-powered algorithms for accurate car valuation are among Cars24’s product-development plans for the site.
“The center will analyze data on used-vehicle sales and market trends and provide statistical models and machine learning algorithms that will predict future demand for certain types of vehicles, identify growth opportunities and optimize pricing strategies,” said the company.
Rising costs swelled Cars24’s losses to $30 million U.S. in FY22 (the financial year ended March 31, 2022), up by 29.5% year on year. In FY22, Cars24 expanded to the Gulf, Australia, and Southeast Asia, while its financial arm disbursed over $120 million U.S. in loans. However, the company was hit by rumours of cost-cutting, mass layoffs, and a stoppage of expansion.
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 U.S. so far.