Himanshu Ratnoo, chief executive of Cars24’s India used-cars division, has resigned from his position after a five-year tenure. This significant leadership change comes as the SoftBank-backed marketplace actively prepares for an initial public offering (IPO). Co-founder Vikram Chopra will now assume direct control of the company's largest business vertical during this pivotal period.
Leadership Change Amid IPO Preparations
The announcement was made internally, with co-founder Vikram Chopra confirming he will now oversee the India used-cars leadership team. In an email to staff, Chopra framed the departure as a natural part of corporate evolution, stating that organizational and individual paths can diverge. This move consolidates authority as the firm navigates its pre-IPO preparations and aims to reassure stakeholders.
Ratnoo’s Tenure and Contributions
Ratnoo joined Cars24 in 2020 and was promoted to CEO of the India used-cars business in 2024, a division constituting over half of operations. He was instrumental in developing key initiatives like franchise models and new strategies for luxury car transactions. More recently, he became the public face of a major marketing campaign centered on building consumer trust.
A Strategic Pivot to Profitability
The leadership shuffle occurs against a backdrop of improving financial metrics. For the first half of fiscal year 2026, the company reported an 18% year-on-year rise in adjusted net revenue to ₹651 crore. It also reduced its adjusted EBITDA loss by 36% to ₹162 crore, demonstrating a clear focus on enhancing unit economics.
This progress is driven by a strategic pivot from lower-margin wholesale transactions toward more profitable retail sales and services. A key growth driver has been its financing arm, with global loan disbursements increasing by 38% to ₹1,637 crore. This shift is a common strategy for tech unicorns aiming for sustainable profitability before an IPO.
Future Targets and Market Context
Despite a recent claim of achieving profitability, the company still recorded an adjusted EBITDA loss. Chopra has set an ambitious target of clocking ₹1,000 crore in EBITDA within the next 24 months. This goal underscores the pressure to solidify its financial standing for public market investors as it prepares for its public offering.
Cars24, last valued at approximately $3.3 billion, operates in a competitive market against rivals like Spinny. The company's ability to execute its strategic pivot and demonstrate stable leadership will be crucial for its success in the public markets. This transition's success is critical in maintaining investor confidence ahead of the public listing.
Himanshu Ratnoo's departure marks a pivotal moment for Cars24 as it steers toward its much-anticipated IPO. While the company showcases improved financial health and a clear strategy for profitability, the transition places pressure on co-founder Vikram Chopra to maintain momentum. The coming months will be critical in demonstrating leadership stability to win investor confidence.