Some of India’s leading online platforms for used cars are scaling back operations and exiting ancillary ventures to prepare for potential initial public offerings (IPOs) that may cumulatively raise over $1 billion, according to sources familiar with the matter.
Three unicorn startups—CARS24 Services Pvt., CarDekho, and Spinny—are reportedly in preliminary discussions with bankers to gauge investor interest, the sources, who requested anonymity due to the confidential nature of the talks, indicated. These companies are also reviewing restructuring needs to position themselves favorably for the upcoming share sales.
The targeted IPOs are anticipated within the next 12 to 18 months, although discussions are in the exploratory stage and none of the companies have engaged advisers to draft necessary documentation.
The online used car marketplaces are aiming to leverage the growing investor interest in domestic-focused businesses in India, which has become the third busiest IPO market globally this year. According to Bloomberg data, firms in India have raised over $10 billion through first-time share sales in 2025.
CARS24, which is backed by SoftBank Group, has undertaken a comprehensive restructuring of its operations over the past year, cutting hundreds of jobs in non-core areas and in product and tech divisions. The company has shuttered its enterprise spare-parts venture, Inspare, and its car-servicing unit, FourDoor, to concentrate on its primary used-car marketplace.
Leaner Operations
Job reductions reflect the challenges these companies confront in streamlining operations. Early investors—such as Google Capital, Tencent, and Tiger Global Management—are pressuring these firms to achieve profitability swiftly. A reduction in the flow of private capital in a saturated second-hand car market has also compelled the businesses to return to their core functions.
CARS24 reported a loss of 5 billion rupees for the financial year ending in March 2024, based on data from market research organization Tracxn. The company raised about $450 million in December 2021 from investors like SoftBank and Tencent, achieving a valuation of $3.2 billion at that time.
Competing firm CarDekho, managed by Girnar Software Pvt., had intended to file IPO paperwork in early 2025 but has now postponed those plans. The company is also reportedly planning to merge its insurance unit, InsuranceDekho, with RenewBuy.
Spinny, or Valuedrive Technologies Pvt., has similarly curtailed its expansion efforts and is actively seeking new capital.
Business Restructuring
Another rival, Droom, has refocused its business strategy toward the premium and luxury segments and is planning to refile its IPO documents, according to local media reports. Droom has significantly reduced its promotional and operational expenses following a sharp revenue decline over the past two years, as noted by Neha Singh, CEO of Tracxn.
CarDekho chose not to comment on its plans, while CARS24, Spinny, and Droom did not respond to inquiries regarding their cost-cutting measures and IPO strategies.
CarDekho, Spinny, and Droom also reported losses for the fiscal year ending in March 2024, as compiled by Tracxn.
CarTrade Tech Ltd., which operates the CarWale and CarTrade platforms, remains the only publicly traded entity in this sector. Its IPO in 2021 received significant attention, with demand reaching 20 times the number of shares issued. The company’s stock has risen 63% this year, compared to a 7% gain for the NSE Nifty 50 Index.
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Published on September 18, 2025
