Synopsis
Mehul Agrawal, cofounder of used car marketplace Cars24, is stepping down from his operational role after over a decade. He will remain on the company's Board. This move follows cofounder Gajendra Jangid's recent exit as CMO, amidst Cars24's growth and preparations for an IPO.Listen to this article in summarized format
This marks the second founder exit at the Gurugram-based company in as many days. Earlier this week, chief marketing officer Gajendra Jangid had said he was stepping away from day-to-day operations.
Industry executives and investors have raised questions about the rapid departures, pointing to potential leadership friction at the company, which is preparing for an initial public offering (IPO).
Cars24 was founded in 2015 by Agrawal, Jangid, chief executive officer Vikram Chopra and chief financial officer Ruchit Agarwal.
In March, Himanshu Ratnoo, CEO of its India used-car business, also exited the company.
Cars24 reported a business decline in fiscal 2025, with revenue falling to Rs 6,233 crore from Rs 6,909 crore a year ago. Its net loss widened to Rs 543 crore from Rs 498 crore in FY24.
The company competes with Tiger Global-backed Spinny in the used-car sales segment. In addition to its core marketplace, Cars24 operates a non-banking finance company (NBFC) to offer credit to buyers. It has also expanded into new verticals, including new-car listings, vehicle insurance distribution, car maintenance and vehicle information management.
Cars24 last raised $329 million in December 2021, led by Alpha Wave Global, at a valuation of $3.3 billion.
In January, Chopra said the company was targeting a public listing within six to 12 months, following improved revenue growth in the first half of FY26. The company is yet to complete its reverse flip from Singapore to India -- a move necessary for a domestic listing.
“Gajendra had begun stepping back from an active role some time ago and has now formally moved into a mentorship position for the next line of leaders. In Mehul’s case, he was leading the company’s international business, which is now stable, and he is looking for a new challenge,” a person aware of the developments said.
In his LinkedIn post, Agrawal said he will continue to serve on the company’s board. “There is never a perfect time for these decisions. But I know this is the strongest we have ever been. We just closed our first globally profitable quarter. That feels like an inflection point - for Cars24 and for me,” he wrote.
