Cars24, the Indian-based digital platform for purchasing or selling used vehicles, recently laid off around 300 employees from their operations, marketing, and consumer financing divisions during the last two months. This is also as the company is having troubles finding large scale funds.
According to the report, Cars24 has also suspended its listing business after testing it for about 4-5 months. About 70-80 people have been laid off from the listing business alone.
Cars24, however, didn’t admit to having any listing business in the report. The layoffs at this scale also hints at the possibility of Car24’s strategy to scale down its consumer financing business, which is housed under a separate entity, the report added. However, defying this, Vikram Chopra, CEO and Co-Founder, said, “No layoffs have taken place."
We have asked few people to leave as a part of the performance assessment process, but nothing else. These numbers are unreal and we have no reason to engage in layoffs.” Cars24 has not responded to an emailed query by DEALSTREETASIA at the time of publishing this article. On the fundraising front, Cars24 had secured about $11 million from its Singapore parent Global Car Group in March this year.
A year ago, it had raised about $50 million from Sequoia Capital India, Kingsway FCI Fund, and KCK Global. According to an Economic Times report published earlier this month, Cars24 was in the process of raising up to $80 million in a fresh equity round of financing to expand operations. Existing backers including venture capital firm Sequoia Capital, Cayman Islands-based Kingsway FCI Fund and Toronto-based KCK Global were likely to contribute to the round.
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