Cars24, a Gurugram-based, online second hand car marketplace, has, reportedly, received nearly six legal notices from landlords in Delhi, for non payment of rent for months, according to a report, cited Inc42.
The legal notices further allege that Cars24 has breached the contract for terminating leases before the lock-in period ended.
“We conduct periodic internal audit of all properties for compliance and are currently in the process of addressing anomalies observed with a few properties in our recent audit. As a company, we are rapidly growing and expanding our operations immensely across India,” a spokesperson of Cars24, said.
Cars24 was founded by Vikram Chopra and Mehul Agrawal in 2015. The company claims to create an efficient and reliable way for car owners to sell their used cars at the best price.
All one has to do is book an appointment with any of the CARS24 branches, visit the branch and sell a car in a single visit.
One can also get an estimated value of his car by using a simple price valuation tool on the CARS24 website.
It had more than 50 branches across 12 major cities in India and is backed by a team of more than 700 employees.
It has sold under one lakh cars since inception in 2015 and clocks 3,500-4,000 transactions per month, with an average price of about INR 2 -3 Lakh per vehicle sold.
In November, Cars24 claimed to have recorded a more than three-fold growth in transactions over the past 10 months. Its monthly transactions grew to 10,000 in October from 3,000 almost a year ago.
Till date, the company has raised $61 Mn from investors such as Sequoia Capital, FCI Fund and KCK Global.
In 2018, the Delhi High Court in an interim order had asked Car24 not to indulge in unfair competition or commercial misappropriation or trademark infringement of the Olx brand, after the US-based online trade facilitator accused the car-selling platform of illegally procuring its sellers’ data.
Olx had alleged that Cars24 representatives or agencies hired by it posed as buyers on the Olx platform, chatted with sellers and procured their contact details.
While, according to an IBEF report, the Indian auto industry, one of the biggest in the world, has 7.1 per cent of the country’s GDP.
Some of the automobile selling startups includes CarDekho, Droom, Quikr, Olx, Mahindra First Choice Wheels, among others.