IPO-bound used car marketplace Cars24 has committed $20 million (₹189.8 crore) to its newly launched AI Labs initiative, aimed at building AI-first products and supporting the next generation of AI startups.
The company said AI Labs will serve as its build, partner, and investment arm, reflecting its ambition to contribute to the development of frontier AI innovation in India. Through the initiative, Cars24 plans to expand its AI capabilities while helping founders and builders leverage artificial intelligence to accelerate their entrepreneurial journeys.
As part of the platform, the company will invest in and incubate early-stage startups focused on creating category-defining AI businesses. Cars24 has also partnered with OpenAI, ElevenLabs, and AWS to strengthen the initiative and drive AI experimentation and adoption.
AI Labs will focus on 3 core areas: building AI-native products and contributing to open-source innovation, collaborating with leading AI companies to accelerate adoption, and providing capital and operational support to emerging AI startups.
The investment aligns with Cars24’s growing use of AI across its business operations. According to the company, AI has helped reduce vehicle inspection times, improve audit processes across retail hubs, and manage more than 15 lakh minutes of customer calls every month across 7 languages.
The announcement comes as Cars24 prepares for a potential public listing. In January, CEO Vikram Chopra shared plans for the company to go public by the end of the year, highlighting improvements in financial performance as it targets opportunities in India’s $200 billion used car market.
For the first half of FY26, Cars24 reported an 18% year-on-year increase in adjusted net revenue to ₹651 crore. The company also reduced its adjusted EBITDA loss by 36% year-on-year to ₹162 crore.
Ahead of its IPO plans, Cars24 has been actively expanding its ecosystem through acquisitions, including vehicle information and management platform CarInfo and automotive utility startup Vehicle Info, as it works toward building a full-stack vehicle ownership platform.
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