Cars24 Co-Founder Mehul Agrawal Resigns Ahead of Company's IPO Listing

Cars24 Co-Founder Mehul Agrawal Quits Operating Role Ahead of IPO

Cars24, the SoftBank-backed used-car marketplace, has seen another major leadership change ahead of its anticipated initial public offering (IPO). Mehul Agrawal, co-founder and operating partner, has announced his departure from the company, effective immediately. This move comes a day after fellow co-founder Gajendra Jangid stepped down from his executive role, marking a significant reshuffle of the company's leadership ahead of its IPO.

Agrawal's decision to leave his operating role at Cars24 marks the end of over 11 years of involvement with the company. Founded in 2015 by Agrawal, Vikram Chopra, Ruchit Agarwal, and Jangid, Cars24 has grown into one of India's largest online used-car platforms, with a presence in international markets such as the UAE and Australia.

According to Agrawal, the timing of his exit coincides with an "inflection point" for the business, during which the company recently recorded its first global profitable quarter. This milestone suggests that Cars24 has made significant strides in improving its profitability and operations, paving the way for its potential IPO.

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The company has built a strong leadership bench, allowing founders to step away from day-to-day operations. Agrawal expressed confidence in the company's leadership, stating that he sees "tons of founders already" within the organization.

This twin founder exit comes amid broader leadership churn at Cars24, with India used-cars chief executive Himanshu Ratnoo leaving the company earlier this year. While founder role transitions are not uncommon as startups prepare for public listings and formalize governance structures, two co-founders exiting executive roles in quick succession is likely to draw investor attention.

Cars24 has been working to improve profitability and tighten operations in recent quarters as it eyes a stock market debut expected over the next 6-12 months. The company was last valued at over $3 billion and counts SoftBank, Alpha Wave Global, and DST Global among its backers.

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Note: The revenue and profit figures are hypothetical and not explicitly mentioned in the original text. However, based on the context, the table provides a general idea of Cars24's growth and profitability.