Cars24 expects to be eligible to file DRHP by Apr: CFO

Cars24 anticipates being able to file its draft red herring prospectus (DRHP) by April, according to its CFO Shivanshu Makkar. This timeline is contingent upon completing the reverse flip process that transitions the company from being incorporated in Singapore to India. Makkar explained that the reverse flip, similar to the processes implemented by Flipkart and Myntra, could take anywhere between six to nine months.

Following the completion of this process, Cars24, which currently operates as a Singapore-based entity, will file for its IPO in India. Once Cars24 becomes an Indian entity, it will be eligible to file its DRHP, which would then require approximately three to four months for Sebi approvals, pricing, and book-building. Makkar highlighted that the primary purpose of the IPO is to create capital for expansion in India and other geographies, rather than meeting an immediate need for funding.

The company's last funding round was in 2022 at a $3.3 billion post-money valuation, and since then, no additional capital has been raised as the company has not required extra financing. The current valuation has not been specified, and Makkar emphasized that he does not have a target valuation in mind for the IPO. He views the IPO as a means to provide liquidity to shareholders and employees while also raising capital to support the company's expansion plans.

In addition to India, Cars24 is exploring expansion opportunities in the Gulf region and Australia, with a notable presence in the UAE, where the company holds around a 7% share of the used-car market and is experiencing rapid growth.