Used-car unicorns CARS24, CarDekho and Spinny plan $1 billion IPO

Core Insights - Major online used car vendors in India are preparing for potential stock listings that could raise over $1 billion combined [1][2] - Three unicorn startups, CARS24, CarDekho, and Spinny, are in early discussions with bankers to gauge investor interest and assess necessary restructuring for initial public offerings (IPOs) [2][3] - The companies aim to launch their IPOs within the next 12 to 18 months, although they have not yet engaged advisers for documentation [3] Industry Trends - The online used car marketplace is capitalizing on increasing investor interest in domestic-focused businesses in India, which has become the third busiest IPO market globally in 2025, raising over $10 billion through first-time share sales [4] - The pressure to streamline operations is evident as early investors push for profitability amid a tightening flow of private capital in the crowded second-hand car market [6] Company Developments - CARS24 has undergone significant operational changes, including job cuts and the closure of non-core ventures, to concentrate on its primary used-car marketplace [5][6] - CARS24 reported a loss of 5 billion rupees for the year ending March 2024 and had previously raised approximately $450 million at a valuation of $3.2 billion [7] - Competitor CarDekho has postponed its IPO plans and is merging its insurance arm with another company, while Spinny is also seeking fresh capital and slowing down expansion [7][8] Business Restructuring - Smaller rival Droom is refocusing on premium and luxury segments and is looking to refile IPO documents after significant revenue declines [9] - All mentioned companies, including CarDekho, Spinny, and Droom, reported losses for the year ending March 2024 [10] Market Performance - CarTrade Tech Ltd., the only publicly traded company in this sector, experienced a successful IPO in 2021 with demand exceeding 20 times the shares offered, and its stock has risen 63% this year, outperforming the NSE Nifty 50 Index [11]