New Delhi, Auto Desk. On one hand, where the used car market is growing rapidly since the Corona period, on the other hand, there is news of used car sales company Cars24 laying off 600 of its employees. Cars24 is a SoftBank and Alfa Wave Global backed used car marketplace marketplace where people can buy second hand cars at very affordable prices. According to media reports, the company has laid off 600 people from its various departments.

Know what is the reason

Cars24 joins a growing list of startups such as Unacademy, Vedantu and Meesho that have laid off employees to save cash amid a slowdown in funding and cautious investor sentiment. Formed in 2015, Cars24 leverages technology to help customers buy, sell and finance used cars. Let us tell you for information, before the layoff, Cars24 had about 9,000 employees.

A person associated with the matter, speaking on condition of anonymity, said that while everyone is being forced to quit, most of the employees are being forced to work in positions smaller than their own. He also told that this layoff is not happening due to lack of funds, but all this is being done by the company for its global expansion.

The company raised $300 million in equity in December and an additional $100 million, valued at approximately $3.3 billion.

At the time Cars24 said it would use the proceeds to fuel its international expansion and increase its renewal laboratories. At the same time, it will accelerate growth to gain market share.

In 2021 the company entered international markets such as Australia, the United Arab Emirates and Thailand, and had plans to expand its presence to 6-7 countries in 2022.

Edited By: Atul Yadav