India’s Used-Car Startups Gear Up for $1 Billion IPO Pipeline: CARS24, CarDekho, Spinny in Focus

Mumbai | September 19

India’s IPO pipeline for 2025 is heating up, with three leading used-car startups — CARS24, CarDekho and Spinny — preparing for public listings that could collectively raise over $1 billion. These upcoming IPOs highlight the growing investor appetite for India’s pre-owned car market, which is expanding rapidly amid rising demand for affordable mobility.

CARS24 IPO: Leaner Operations, Sharper Focus

The CARS24 IPO is one of the most anticipated listings in India’s startup ecosystem. Backed by SoftBank, Tencent and Google Capital, CARS24 has carried out a sweeping overhaul of operations to become IPO-ready. The company has cut hundreds of jobs across non-core units, shut down its Inspare spare-parts arm and its FourDoor servicing business, and pivoted fully towards strengthening its core used-car marketplace. Despite reporting a ₹5 billion loss in FY24, the CARS24 IPO is expected to test investor confidence in its turnaround strategy.

The CarDekho IPO, run by Girnar Software, was initially expected in early 2025 but has been deferred. The company is currently focused on merging its InsuranceDekho arm with RenewBuy to simplify operations ahead of a market debut. Backed by Tiger Global and Sequoia, the CarDekho IPO will likely attract strong investor interest once the restructuring is complete.

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Spinny IPO: Slower Expansion, IPO Pipeline Builds

The Spinny IPO, operated by Valuedrive Technologies, is also being prepared. The company has slowed expansion and is seeking fresh capital while planning its IPO launch within the next 12–18 months. Spinny remains one of the most recognisable brands in India’s used-car startup space, and the Spinny IPO could provide investors with another high-growth pre-owned car play.

Droom and Sector Consolidation

Smaller rival Droom is also exploring an IPO after restructuring its business to focus on premium and luxury segments. Droom has cut costs and reduced promotional spending after a steep decline in revenues, and reports suggest it may refile draft papers soon. Together with the CARS24 IPO, CarDekho IPO and Spinny IPO, this signals a wave of consolidation and capital market focus across India’s pre-owned car industry.

Why Used-Car IPOs Matter for Investors

India’s IPO pipeline in the used-car market comes at a time when the country has emerged as the world’s third busiest IPO destination, with more than $10 billion raised through first-time share sales in 2025. Investor appetite has shifted toward domestic, consumption-driven businesses, and the CARS24 IPO, CarDekho IPO and Spinny IPO reflect this trend. With early backers such as SoftBank, Google Capital, Tencent and Tiger Global pushing for profitability, public listings are the natural next step.

Market Context: CarTrade as a Benchmark

CarTrade Tech, which operates CarWale and CarTrade, is currently the only listed player in this space. Its IPO in 2021 was oversubscribed 20 times, and its stock has surged 63% in 2025, outperforming the Nifty 50’s 7% gain. This strong performance sets a benchmark for the upcoming CARS24 IPO, CarDekho IPO and Spinny IPO.

“Startups in the pre-owned car market are increasingly looking at capital markets instead of private equity exits, positioning themselves as growth platforms rather than traditional yield plays,” said a source tracking the sector.

CarDekho declined to comment on its IPO plans. CARS24, Spinny and Droom did not respond to queries.

*With inputs from Moneycontrol*

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