Sector: E-Commerce (Used cars)
Founded: 2015
Valuation: $1.84 billion (2021)

Company Overview: Cars24, founded in 2015, is one of India’s leading online platforms for buying and selling used cars. Cars24 revolutionized the used car market by introducing a digital-first approach to vehicle transactions, offering a simple, transparent, and efficient solution to buyers and sellers. In 2020, Cars24 raised $200 million, achieving unicorn status.

Challenges encountered:

• Overcoming customer trust issues in the used car market, which is often plagued by a lack of transparency and standardization.
• Managing inventory efficiently while maintaining liquidity in a sector with varying demand cycles.
• Balancing capital needs for expansion while maintaining cost efficiency in operations, including logistics, refurbishment, and quality checks.

Solutions Implemented:

• Cars24 implemented real-time data analytics to assess car value, monitor market demand, and manage inventory, ensuring efficient use of capital.
• The company built a centralized financial control system to streamline its cash flows across its refurbishment centers and logistics operations.
• To gain customer trust, Cars24 introduced certified cars, offering warranties, and financing options, which increased customer confidence and boosted sales.

Outcomes Attained:

• Cars24’s efficient financial planning helped scale the company to over 200 cities in India and allowed it to diversify into the bike-selling and financing segments.
• By integrating automated financial reporting and inventory management systems, Cars24 improved operational efficiency, reducing holding costs and enhancing liquidity.
• Cars24’s robust growth strategy attracted global investors like Sequoia and DST Global, helping the company raise over $450 million in funding and solidify its position as a market leader.

Actionable Insights:

• Leveraging data analytics can improve inventory management and cash flow optimization, particularly in sectors like used cars with fluctuating demand.
• Introducing warranties and financing solutions can build customer trust and increase transaction volume in markets where transparency is a challenge.
• For businesses handling physical assets like vehicles, adopting centralized financial control systems can reduce operational costs and improve liquidity management.