Gurugram-based e-commerce start-up Cars24 achieved a 2.2x increase in its operating revenue to Rs 6,072 crore in the financial year (FY) 2022 from Rs 2,796 crore in FY21. It registered a 117.2 per cent surge.

The company earns its primary revenue from the sale of pre-owned or used vehicles. In FY22, its revenue from the sale increased to Rs 5,868 crore from Rs 2,709 crore. Its other operating revenue also increased to Rs 165 crore from Rs 51 crore. 

It also reported an 80.7 per cent jump in its gross revenue. 

According to an Entrackr report, the company raised nearly $1 billion in funding in the same financial year and achieved a valuation of $3.3 billion.

Founded by Vikram Chopra and Mehul Agarwal in 2015, Cars24’s holding firm in Singapore has 112 subsidiaries in multiple geographies like India, Australia, UAE, Saudi Arabia, Turkey, Indonesia and Thailand. 

Along with its increase in revenue, the company reported a nearly 8.3x increase in total loss. In FY22, it suffered a net loss of Rs 1,834 crore against Rs 220 crore in FY21. Additionally, its EBITDA and ROCE margin declined to -27.15 per cent and -30.20 per cent. 

The net loss peaked due to a 160 per cent increase in its total expenses. Cars24 hired a good number of people in FY22, hence its employee benefits cost surged to Rs 700 crore in FY22, from Rs 236 crore in FY21. The net expenses also included a Rs 75 crore ESOP plan. Its advertising and promotional cost surged to Rs 413 crore in FY22 from Rs 84 crore in FY21.