Cars24 co-founder Mehul Agrawal steps down as IPO nears
What's the story
Mehul Agrawal, the co-founder of Cars24, has stepped down from his operational role in the SoftBank-backed used-car marketplace. The move comes just a day after another co-founder, Gajendra Jangid, announced his exit from an executive position. Both these high-profile exits mark a major reshuffle at the founder level as Cars24 prepares for its initial public offering (IPO).
Transition
I will continue being the biggest cheerleader, says Agrawal
Agrawal announced his decision to step down after over 11 years of building Cars24 in a LinkedIn post on April 30. He said, "My DNA has Cars24 written all over it. I will continue being the biggest cheerleader. I will continue as a member of the Board, watching every step in a different capacity."
Business evolution
Cars24's journey and recent milestones
Founded in 2015 by Vikram Chopra, Agrawal, Ruchit Agarwal, and Jangid, Cars24 has become one of India's largest online used-car platforms. The company has also expanded into international markets like the UAE and Australia. Agrawal said his departure comes at an "inflection point" for the business, as Cars24 recently had its first global profitable quarter.
Management shift
Building a strong leadership team for smooth transition
Agrawal emphasized that the company had built a strong leadership team, allowing founders to step back from day-to-day operations. The dual founder exits come amid wider leadership changes at Cars24. Earlier this year, Himanshu Ratnoo, CEO of Cars24's India used-cars division, also left the company. Such transitions are common as start-ups gear up for public listings and establish governance structures.
Market debut
Financial performance and IPO plans
In January, Chopra announced Cars24's H1FY26 results and hinted at an IPO in the next 6-12 months. The company's adjusted net revenue rose 18% year-on-year to ₹651 crore, while adjusted EBITDA burn fell by 36% to ₹162 crore. Last valued at over $3 billion, Cars24 counts SoftBank, Alpha Wave Global, and DST Global among its investors.