Cars24's operational revenue has increased by almost 60% for the financial year of 2017-2018, however their expenditures increased similarly which kept the used car portal from India in the red.
India-registered entity Cars 24 Services Pvt. Ltd posted standalone operational revenues of $9.05 million for the year ended March 2018, up from $5.73 million in the previous fiscal, show filings with the Registrar of Companies (RoC).
Cars24's revenue streams include sales of goods (used cars) and earnings from services such as cash handling and parking fees.
Gross expenditure rose 50% to 748.77 crore, up from Rs 497.10 crore the previous year. The number was pushed up by increase in expenditure on purchasing used cars, advertising and promtions, and employee benefits.
Net losses marginally widened to Rs 78.94 crore from Rs 76.35 crore in 2016-17.
The firm, unlike most others in the space, operates on an asset-heavy model. Cars24 busy cars from individuals and sells them to dealership and used-vehicle platfoms. People looking to sell their car get their vehicle evaluated online and them visit the nearest Cars24 branch. On completion of physical verification, the company transfers the sum into the bank of the seller, according to its website.
Though Cars24 files its consolidated financials with its Singapore-regiatered parent, Global Car Pte. Pvt. Ltd the company currently has operations inly in India.
Besides, the company also has another India-registered entity, Cars24 Financial Services Pvt. Ltd, which was incorporated a month ago, according to data available with the Ministry of Corporate Affairs.
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