Cars24 to Lay Off 120 more Employees, Shuts Non-Core Units Inspare and FourDoor

Cars24, a Delhi NCR–based used-car marketplace, is set to lay off 120 employees from its non-core verticals as part of a restructuring exercise, Inc42 reported. This follows the April layoffs of 200 employees.

The start-up plans to shut down or scale back non-core units, including its B2B vehicle-spare-parts platform, Inspare, resulting in 80 job losses. Employees in Inspare’s catalogue, procurement, sales, operations and other teams have been informed of the shutdown and encouraged to seek new opportunities.

Vikram Chopra, CEO of Cars24, announced on LinkedIn that Inspare, which was in the “pilot” stage, has been discontinued. He stated, “We assumed the market was ready to change. And the more we pushed for adoption, the clearer it became that it was not.”

Affected employees are being offered severance packages based on their notice periods, sources told Inc42.

Additionally, Inc42 reported that 40 employees from Cars24’s car-servicing and maintenance platform, FourDoor, have also been laid off.

Last Layoff

Cars24 laid off approximately 200 employees across various functions, including product and technology, as the company scaled back select projects, Entrackr reported, citing an internal note from Chopra.

“Over the past few weeks we’ve had to make the difficult decision to part ways with around 200 of our teammates across various functions,” Chopra wrote. “Some projects didn’t deliver as expected, some roles were added too early, and a few hypotheses didn’t hold up when tested. In certain cases we couldn’t offer the kind of growth or learning people truly deserve.”

The layoffs come as the SoftBank-backed firm expands into new verticals. Earlier this week it announced the acquisition of Team-BHP, one of India’s leading automotive-community platforms.

Chopra emphasised that no further layoffs are planned, calling this a “specific, intentional reset, not the beginning of a rolling plan.” He confirmed that severance support is being provided to affected employees.

The development comes amid rising competition in the used-car market. Rival platform Spinny recently raised $131 million from Accel’s Leadership Fund, positioning itself for aggressive growth.

Over the past year Cars24 has diversified its operations. In addition to acquiring Team-BHP—which will continue to function independently—the company launched FourDoor, a multi-brand car-servicing business, and a New Cars platform featuring AI-powered walkthroughs and home test drives. The firm also expanded into Indonesia, committing ₹100 crore to scale operations in Southeast Asia.