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Bengaluru, May 19 Used-cars retailer Cars24 has laid off 600 employees, citing performance issues.
In response to BusinessLine queries, a Cars24 spokesperson said, “This is business as usual ... performance-linked exits that happen every year.” However, a financial publication has reported that the company is taking these measures to cut costs and automate operations.
in the past few months, layoffs in the start-up ecosystem have become as common as the unicorn valuations of 2021. Earlier this month, ed-tech unicorn Vedantu announced that it was laying off 624 employees citing bad market conditions. Unacademy, Meesho, Trell, OkCredit and Lido Learning have also announced layoffs this year.
This development comes on the heels of Cars24 raising $400 million in a funding round led by Alpha Wave Global. The company, which has a 9,000-member team, was valued at $3.3 billion in this round, almost double the valuation in its previous round in September 2021. The investment was said to be to support the brand’s expansion in West Asia, Australia, and South-East Asia, and to strengthen its India presence. In addition, Cars24 also planned to invest in enhancing its technology.
Founded in 2015, Cars24 is a global e-commerce platform for pre-owned vehicles with a presence in India, West Asia, Australia and South-East Asia. It has also launched seven Mega Refurbishment Labs (MRLs) in India and one in the UAE.
The company aims to help consumers buy, sell and finance used cars by leveraging technology. Cars24 had earlier claimed to have over 90 per cent market share in the online used car segment. Cars24 competes with players such as Ola Cars, CarDekho, and CarTrade in the used cars retail market.
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