Cars24 IPO: reverse flip to India could enable DRHP by April
Cars24 is completing a reverse flip from Singapore to India and expects to be eligible to file its draft red herring prospectus (DRHP) by April. The process could take six to nine months, CFO Shivanshu Makkar said.
Cars24 was incorporated in Singapore in 2015 and has received approval for the reverse flip. After it becomes an Indian entity, it will file papers for an IPO in India. Makkar said there was no target IPO valuation at present.
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Cars24's last funding round was in 2022 at a $3.3 billion post-money valuation. Makkar said the company has not raised fresh capital since then because it has not required additional funding.
What Cars24 does
Cars24 operates in the used-car market. In India, the company is currently present in 25 cities in retail, according to Makkar. Beyond India, Cars24 is looking at further expansion in the Gulf region and has expanded to three cities in Australia.
What the CFO said
“The primary purpose of the IPO would mostly be to create a war chest to go deeper into India and make sure we are able to ensure that the next 20 crore Indians are able to buy a car,” Makkar said.
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