Cars24, a digital used car platform based out of India, is currently in a legal scuffle after they got six legal notifications from their landlords in Delhi for not paying rent. The landlords are claiming that the company then shut down their stores in these locations which also violates their lease agreements.
According to the reports Cars24 has shutdown around a dozen of their stores in Delhi. With the shutdown of these stores the landlords claim that the company has illegally ended their leases before their lock-in period ended.
Started back in 2015 by Co-Founders Mehul Agrawal and Vikram Chopra with the focus to change the way how used vehicles are being sold within India. The company says they have made a simple and reliable options for consumers to sell their vehicles while getting a good price. Consumers set up an appointment with a nearby Cars24 store and can sell their vehicle within a single visit. The company also offers a tool on their website to help consumers find the value of their car before beginning the selling process. Cars24 charges around 4-5% per transaction.
Currently, the company has around 50 branches within 12 different cities around India and has 700 employees.
Since the start of the company, Cars24 averaged around 4,000 vehicles every month, but the company has claimed that in the past 10 months their transactions have tripled. A year ago they were averaging around 3,000 transactions and now they are closer to 10,000.
Cars24 has also fund raised around $61 million from investors which includes FCI Fund, KCK Global, and Sequoia Capital.
Speaking about the landlord reports a spokesperson for Cars24 stated: “We conduct periodic internal audit of all properties for compliance and are currently in the process of addressing anomalies observed with a few properties in our recent audit. As a company, we are rapidly growing and expanding our operations immensely across India.”
The landlords aren't the only ones unhappy with the company. On social media, some users are claiming that Cars24 hasn't paid around three months worth of rent and left their stores vacant in the middle of the night.
These issues also aren't the first time that Cars24 has run into issues. Last year, the company was accused of illegally getting Olx's seller data and a court order requested that Cars24 no longer conduct unfair practices, advertise more fairly, and not infringe on trademarks from Olx.
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