IPO

IPO-bound Cars24 launches Cars24 Labs, commits $20 million to AI products, startup investments

Cars24 is committing $20 million (around Rs 170 crore) to a new artificial intelligence initiative that will build AI products, invest in startups and partner with frontier AI companies, as the IPO-bound company expands its ambitions beyond automotive commerce.

The initiative, called Cars24 Labs, was unveiled by founder and chief executive Vikram Chopra on June 1 and will serve as the company's dedicated AI build, partnership and investment arm.

“We are committing $20 million to AI and launching Labs, our build, partner, and investment arm. This is the biggest bet we've made as a company,” Chopra wrote in a note announcing the initiative.

According to Chopra, Cars24 Labs will operate across three areas — building proprietary AI products and open-source models, partnering with frontier AI companies, and backing early-stage AI startups.

The company said it is already working with firms including OpenAI, ElevenLabs and Amazon Web Services. Startups selected under the programme will receive capital, infrastructure and operational support from Cars24.

The announcement marks one of the largest publicly disclosed AI commitments by an Indian startup at a time when companies across sectors are racing to integrate artificial intelligence into products and operations.

The launch reflects a broader shift underway at Cars24, which has increasingly positioned itself as an AI-native company rather than simply a used-car marketplace.

In his note, Chopra argued that artificial intelligence represents a larger technological shift than either mobile or the internet and said companies that fail to adapt risk becoming irrelevant.

“The only way to become an AI-native company is to organise as one,” he wrote.

Cars24 has spent the last year integrating AI across inspections, engineering, customer support, fraud detection and marketing operations. The company claims AI-led inspections have reduced inspection times from around 60 minutes to 15 minutes, while engineering productivity has improved significantly through AI-assisted software development.

Leadership changes and IPO preparations

The AI push comes during a period of significant transition for the SoftBank-backed company.

Just over a month ago, co-founders Mehul Agrawal and Gajendra Jangid stepped down from executive roles, though both remain associated with the company. Agrawal continues on the board, while Jangid remains involved with branding initiatives and the company's Crashfree India programme.

Cars24 is also preparing for a public listing and is currently redomiciling from Singapore to India, a key step before filing draft IPO papers.

The company recently reported improving financial performance for FY26. Adjusted EBITDA losses narrowed to Rs 200 crore from Rs 475 crore a year earlier, while adjusted net revenue rose 27 percent to Rs 1,411 crore.

Cars24 also reported its first adjusted EBITDA-profitable quarter in the January-March period, posting adjusted EBITDA of Rs 20 crore.

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