Used cars platform Cars24 asks 600 employees to go
- Founded in 2015, Cars24 helps consumers buy, sell and finance used cars by leveraging technology. Before the layoffs, Cars24 had close to 9,000 employees
MUMBAI: Cars24 Services Ltd, the used cars platform e-commerce platform backed by investors such as Softbank and Alpha Wave Innovation, has asked 600 of its employees to leave, even as it pushes ahead with its international expansion plans, a person familiar with the development said.
“This is business as usual – performance linked exits that happen every year,” a Cars24 spokesperson said, declining to label this as a “layoff”.
All of the employees asked to go were from India, the person cited above said.
Most of the staff asked to go were in junior positions, the person added, requesting anonymity. “It is not because of funds, we are also expanding globally."
News portal Inc42 was the first to report about the layoffs.
Founded in 2015, Cars24 helps consumers buy, sell and finance used cars by leveraging technology.
Before the layoffs, Cars24 had close to 9,000 employees.
The company raised $300 million in equity and an additional $100 million in December, which valued the used car business at around $3.3 billion.
At the time, Cars24 had said it would use the proceeds to fuel its international expansion, and ramp up its refurbishment labs, while also accelerating on growth to gain market share.
In 2021, the company entered international markets such as Australia, the United Arab Emirates and Thailand, and had plans to expand its presence across 6-7 countries in 2022.
In a 2021 interview with Mint, Cars24 had said it was eyeing expansion in Saudi Arabia, as well as Indonesia and Malaysia in Southeast Asia.
At that time, cofounder Gajendra Jangid had said that international markets contributed 20% to the company’s overall revenues due to higher ticket sizes. Jangid had said the company’s annual recurring run-rate stood at $1 billion in December 2021.
In recent months, multiple startups across sectors have laid off employees in a bid to conserve capital. On Wednesday, Vedantu laid off 424 of its employees, with other startups also announcing retrenchment plans.
In March and April, Unacademy, operated by Sorting Hat Technologies Pvt. Ltd, laid off nearly 800 employees.
Earlier this year, edtech startup Lido Learning asked over 1,200 of its employees to resign, saying that it was looking to wind down its operations amid a funding crunch.
Social commerce startup Meesho laid off 150 employees in May. In February, OkCredit, which is backed by marquee investors including Tiger Global and Lightspeed, laid off around 40 employees.
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First Published:19 May 2022, 03:07 PM IST
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