Cars24 has reported an annualized Gross Merchandise Value (GMV) of ₹11,000 crore, supported by a 37% year-on-year increase in monthly transactions. The company has focused on maintaining EBITDA profitability by scaling its lending business and integrating AI into operations. While operational efficiency is improving, the private firm faces challenges in its core used-car business amid stiff competition and shifting consumer demand.
Cars24, a prominent player in the used-vehicle ecosystem, has achieved an annualized Gross Merchandise Value (GMV) run rate of ₹11,000 crore as of August 2026. This milestone marks a period of operational scaling, with monthly transaction GMV rising 37% compared to the previous year. For market observers tracking the startup ecosystem, this operational performance reflects a strategic pivot from high-burn growth to a more measured, profitability-focused model.
Financial services have emerged as a key growth engine for the firm. The company's lending division reached an annualized disbursement run rate of ₹5,000 crore, with ₹415 crore in loans disbursed during August—a 70% increase compared to the same month last year. This lending arm is essential for driving revenue and improving margins, especially as the firm moves beyond a purely transactional used-car model. Additionally, the company has integrated artificial intelligence across its workflows, deploying tools such as automated code generation and operational micro-agents. This technology-led approach has reportedly led to a 52.3% year-on-year jump in revenue per full-time employee, helping the firm keep operating costs in check even as it grows.
While these operational figures highlight internal efficiency, the broader business context remains complex. Industry observers note that the company's core used-car business in India has faced revenue headwinds for the past two fiscal years, reflecting broader market challenges and shifts in business models. As the firm aggressively scales its lending arm, it also takes on increased credit risks, such as potential borrower defaults, which require prudent risk management. Furthermore, the used-vehicle market remains highly competitive, necessitating constant investment to maintain market share and pricing competitiveness.
As a private entity, Cars24's progress is frequently analyzed by those monitoring the sector for a potential future public listing. The key monitorables for the company moving forward include the long-term sustainability of its EBITDA profitability, the asset quality of its growing loan book, and its ability to regain growth momentum in its core Indian operations. Stakeholders may also track how its AI-driven efficiency gains and international performance in markets like Australia and the UAE balance out the competitive pressures faced in the Indian market.