Cars24 Launches Dedicated AI Labs With $20 Million to Back Tech Founders

Cars24 has announced the launch of a dedicated AI Labs, a multi-pronged initiative focused on building AI-first products and supporting ambitious founders. 

As part of this commitment, the platform plans to invest $20 million into the technology. According to a Press Trust of India (PTI) report, this significant investment will be directly funnelled into "startups and teams building transformative AI technologies".

The company outlined that AI Labs will operate across three key pillars: creating AI-native products and contributing to open-source innovation, working closely with leading AI companies to accelerate adoption and experimentation, and providing capital and support to startups building category-defining AI businesses.

Over the last few years, AI has transitioned from a backend experiment to a central pillar for the firm. Cars24 noted that AI has become "deeply embedded across the company's operations, helping teams move faster, make better decisions and create better customer experiences."

An Inc42 report highlighted that the IPO-bound, Gurugram-based used-car marketplace describes the initiative, branded as Cars24 Labs, as its "build, partner, and investment arm." Inc42 further reports that the programme "is intended to reduce external reliance by bringing more AI work in-house" while actively incubating early-stage tech entrepreneurs.

The initiative is designed to act as a holistic launchpad, helping founders turn breakthrough ideas into real-world companies. Instead of offering capital alone, the lab will provide mentorship, cloud infrastructure, distribution opportunities, and access to frontier AI tools.

To achieve this, Cars24 has established strategic collaborations with major global tech players. "The initiative brings together partners including OpenAI, AWS, and ElevenLabs, creating an ecosystem where builders can access world-class technology, expertise, and support as they bring new products to market," the company stated.

Commenting on the launch, Vikram Chopra, Founder and CEO of Cars24, emphasised the monumental scale of the current technological landscape.

"Every major technology shift creates a handful of companies that go on to define the future. We believe AI is the biggest shift of our generation, and the opportunity ahead is far larger than anything we've seen before," said Chopra.

"We want to back founders early, help them move faster, and support the people building things that seem impossible today but inevitable tomorrow," he added.

According to The Economic Times, the initiative comes at a strategic time for the SoftBank-backed marketplace. The firm is currently preparing for a public listing, recently reporting a 27 per cent on-year growth in adjusted net revenue for FY26, whilst successfully narrowing its EBITDA losses by 36%.