Cars24, the Indian used-car e-commerce platform, expects to complete its reverse flip from Singapore to India by April 2027, enabling it to file its draft red herring prospectus (DRHP) for a public offering, signaling a key milestone ahead of its planned IPO.
- Cars24 to complete reverse flip from Singapore to India by April 2027
- IPO filing planned post-redomicile with a 3-4 month approval process
- Focus on expanding in India, UAE, and Australia while improving profitability
What happened
The CFO, Shivanshu Makkar, confirmed Cars24 has sufficient cash reserves and has not raised fresh capital since its $400 million Series G at a $3.3 billion valuation. The company views the IPO not just as a valuation event but as a way to provide liquidity to shareholders and employees, and to enhance corporate governance as a publicly listed entity.
Why it matters
Redomiciling to India allows Cars24 to capitalize on the vast growth potential in the Indian used-car market, where car ownership remains relatively low and expansion opportunities abound. With primary proceeds from the IPO, Cars24 aims to expand its retail operations from the current 25 cities to potentially 200 cities, increasing its active vehicle count significantly.
Cars24 is also positioning itself for international growth in key markets such as the UAE, where it holds a 7% market share in used cars and is growing rapidly, and Australia, where it recently expanded to three cities. The timing of the IPO also aligns with increased market activity in India's used-car sector, with other companies like Spinny and Girnar Software preparing for public listings.
What to watch next
It will be important to monitor Cars24's financial performance and market share progression, especially given its adjusted EBITDA profitability reported in Q4 FY26 and the shift from an inventory-based to commission-based wholesale business model. The company’s ability to scale in new Indian cities and international markets, while maintaining profitability, will be key indicators of its long-term success post-IPO.