India’s launching country is facing cuts from all directions. The online used car market Cars24 laid off 600 employees on Thursday, adding to the list of layoffs of high-ranking “unicorns” amid the money crisis and the need to increase the tracks.
A spokesman for Cars24 said in a statement: “This is business as usual – productivity outputs that happen every year.” Cars24, before these layoffs, had a workforce of about 9,000. 6.6% of Cars24 employees face the ax.
This move is believed to be in response to the financial crisis that has dominated the entire start-up ecosystem. As the funding is not easy to find and Cars24 has publicly stated that it intends to become a publicly traded company in the next 18-24 months, it is not very difficult to assume that these cuts have been made to reduce costs everywhere possible.
🚨 EXCLUSIVE: Used car dealer Cars24 has cut about 600 employees
-> Cars24 fired employees mainly from lower positions in the departments
-> Sources said that the layoffs occurred because the launch is trying to further automate operations and reduce costs.
– Debarghiawrites May 19, 2022
Contrary to popular belief, Cars24 is expanding in Australia, the UAE and other countries. The company recently raised $ 400 million, scattered among many G-Series investors, 300 million of which was raised as equity. The circle set the value of the company at a solid $ 3.3 billion. In the past eight months, Cars24 has raised a collective $ 850 million from investors such as SoftBank, Tencent and DST Global.
Cars24, unlike its competitors CarDekho and Spinny, has not registered any gains since its inception in 2015. Fintrackr’s analysis showed that these companies have recorded losses in the range of ₹ 110-340 kroner. However, the market favors the idea of Cars24, as used cars have become a preferred option since the economy began to suffer from global events such as COVID-19, the subsequent chip shortage and the war between Russia and Ukraine.
Cars24 joins other Indian start-ups such as Unacademy, Meesho, Vedantu and Furlenco, which have recently had significant redundancies due to difficult funding.