Used-car marketplace Cars24 aims to complete its reverse flip from Singapore to India by April 2027, after which it plans to file its draft red herring prospectus (DRHP) for an initial public offering (IPO), Cars24 CFO Shivanshu Makkar told PTI. The company has received approval from Singapore to redomicile and is currently filing the necessary paperwork in India, with the process expected to take six to nine months.
Makkar explained that once Cars24 becomes an Indian entity, it will be eligible to file the DRHP. The IPO process, including approvals from the Securities and Exchange Board of India (SEBI), pricing, and book-building, could take an additional three to four months. This timeline extends beyond the six to twelve months window CEO Vikram Chopra mentioned earlier this year. Cars24 has not raised fresh capital since its $400 million Series G round at a $3.3 billion valuation, as it has sufficient cash on hand.
The listing is intended to provide liquidity to existing shareholders and employees while enhancing corporate governance as a listed company. Makkar emphasized that the IPO is not being pursued as a valuation exercise but as a means to strengthen the company’s position. The primary capital raised from the IPO would enable Cars24 to expand further into the Indian market, which still offers significant growth opportunities.
Cars24’s Series G funding round, completed prior to this announcement, valued the company at $3.3 billion. The company’s IPO filing eligibility by April 2027 marks a key milestone in its growth trajectory, with the subsequent IPO process expected to conclude within months after the DRHP submission.