Cars24 IPO Plans Advance As CFO Shivanshu Makkar Targets April 2027 Eligibility To File DRHP In India

The Cars24 IPO plans will move to the next stage once the company becomes an Indian entity and can file its DRHP with the Securities and Exchange Board of India (SEBI). Cars24 CFO Shivanshu Makkar said the company has received approval from Singapore for the reverse-flip process and expects the transition to take six to nine months.

“After the day we become an Indian entity is when we can file the DRHP. So, by April, we would be eligible to file a DRHP,” Makkar said. He added that the subsequent process, including SEBI approvals, pricing and book-building, could take another three to four months.

Cars24 IPO Timeline

Cars24 was incorporated in Singapore in 2015 and is now in the process of shifting its corporate domicile to India. Makkar said the company has received the necessary approval in Singapore for the reverse flip, with the process expected to take between six and nine months.

The completion of the reverse flip is central to the Cars24 IPO timeline, as the company needs to become an Indian entity before filing its DRHP for the proposed public issue.

Makkar said Cars24 expects to become eligible to file the DRHP by April 2027. Once the document is filed, the company expects the regulatory approval process, pricing and book-building to take another three to four months.

Cars24 has not yet disclosed the final IPO size, price band, subscription dates or the proposed split between a fresh issue and an offer for sale.

Cars24 IPO Plans And Expansion

Cars24 is not planning the proposed IPO because it currently needs external capital to fund its operations. Makkar said the company has not raised an external funding round since 2022 as it has sufficient capital at present.

Instead, the proposed Cars24 IPO is being considered as a way to create capital for expansion across India and overseas markets. “The primary purpose of the IPO would mostly be to create a war chest to go deeper into India,” Makkar said.

Cars24 currently operates retail outlets in 25 Indian cities. According to Makkar, the company could potentially expand its retail presence to around 200 cities and increase the number of cars available on its platform.

The company is also looking at further international expansion, including the Gulf region and Australia. Cars24's last funding round took place in 2022 at a post-money valuation of $3.3 billion. The company has not raised another external funding round since then.

Makkar said the proposed IPO is also expected to provide liquidity to existing shareholders and employees. “For me, the IPO is a way to provide liquidity to the shareholders and to some of the employees, and at the same time raise capital to solve the problem that we are solving in the country and beyond our country,” he said. The company has not disclosed a target valuation for the proposed listing.

Cars24 Financial Performance And Valuation

Cars24 has been working to improve its financial performance as it prepares for a potential public-market debut.

The company reported adjusted net revenue of ₹1,411 crore in FY26, a 27% increase from the previous year. Its adjusted EBITDA loss narrowed to ₹200 crore from ₹475 crore a year earlier.

Cars24 also reported adjusted EBITDA profitability of ₹20 crore in the January-March quarter of FY26, marking its first profitable quarter on this measure. The company has been focusing on improving operating efficiency across its business as it prepares for the next stage of growth.

Cars24 operates across India, the UAE and Australia. In the UAE, Makkar said the company has around 7% of the used-car market and is growing at nearly 30%. In Australia, the company has expanded to three cities.

The company has also increased its use of artificial intelligence across vehicle inspections, engineering and marketing. Cars24 launched Cars24 Labs earlier this year with a $20 million commitment towards AI products, startup investments and partnerships.

The immediate milestone for the Cars24 IPO remains the completion of the Singapore-to-India reverse flip. Once Cars24 becomes an Indian entity, it expects to become eligible to file its DRHP by April 2027.

The IPO size, valuation, price band and final issue structure are yet to be announced. The company will also have to complete the regulatory process before the proposed public issue can open for subscription.

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