Cars24 launches AI Labs, commits $20 million to back AI startups

Used-car marketplace Cars24 has launched AI Labs, an initiative focused on building AI-first products and backing startups developing next-generation artificial intelligence technologies.

As part of the programme, the company has committed $20 million to invest in AI-focused startups and teams, while also offering mentorship, infrastructure support, distribution opportunities, and access to leading AI platforms.

The initiative brings together partners including OpenAI, AWS and ElevenLabs, as Cars24 looks to position itself at the centre of India’s rapidly evolving AI ecosystem.

“AI is the biggest shift of our generation, and the opportunity ahead is far larger than anything we’ve seen before,” said Vikram Chopra, Founder and CEO of Cars24. “We want to back founders early, help them move faster, and support the people building things that seem impossible today but inevitable tomorrow.”

The company said artificial intelligence has become deeply embedded across its operations in recent years, helping improve decision-making, product development, and customer experience.

AI Labs is aimed at extending those learnings beyond Cars24 and into the broader startup ecosystem, the firm added.

The launch comes amid a sharp rise in AI investments globally and in India. According to market estimates, generative AI startups attracted tens of billions of dollars in venture funding globally over the past year, while India has emerged as one of the fastest-growing markets for AI adoption.

Consulting firm McKinsey estimates AI could add as much as $500 billion to India’s economy by 2030, while Nasscom projects the country’s AI market could grow at over 25% annually over the next few years.

India’s startup ecosystem has also seen a surge in AI-focused entrepreneurship, with investors increasingly backing companies building foundational models, AI agents, enterprise automation tools, and industry-specific applications.

Cars24 said AI Labs will focus on three areas: building AI-native products, partnering with leading AI companies, and investing in startups creating category-defining AI businesses.

Beyond investments, the initiative will support hackathons, builder programmes, community-led projects, and open-source contributions aimed at accelerating AI innovation.

The move places Cars24 among a growing list of Indian technology companies creating dedicated AI investment and incubation programmes, as the race to build the next generation of AI-led businesses gathers pace.

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