India-based used car marketplace Cars24 has ceased operations in Indonesia and Saudi Arabia — markets it entered a little over than a year ago, website TechInAsia reports.
Confirming the company’s departure from both countries, company co-founder and CEO Vikram Chopra said it followed “months of deliberations” and represented a shift in priorities toward such core markets as India, Australia, the UAE and Thailand.
In July 2022, Cars24 expressed its intention to slash its rate of cash burn by 50%, amid a deteriorating global economic environment.
The company registered year-on-year (y-o-y) revenue growth of 116% to $729 million U.S. in FY21-22 (the 12 months to March 2022), while its losses rose by 29.5% y-o-y to $30 million over the same period.
In March, Cars24 opened its first engineering research and development centre in Bengaluru. This facility is focused on developing tools for the inspection, refurbishment and reconditioning of used vehicles, according to the company.
Founded in 2015, Cars24 was initially a b-to-b marketplace but later shifted to a c-to-b-to-c model, offering customers the opportunity to buy and sell motors online.
The company acquired a non-banking financial company (NBFC) license in 2020 for its financial services and later ventured into the used motorcycle business. It has raised about $1.3 billion U.S. in funding to date.
The AIM Group has reached out to Cars24 for comment. This story will be updated if and when a response is received.