New Delhi, Aug. 14 -- India's used-car startups, including Cars24, Spinny and Droom, are tapping new segments, forging partnerships and consolidating operations as they pursue more stable revenue and profit growth in a tough-to-crack market still dominated by unorganized local players.

SoftBank-backed Cars24 has continues to expand its use of artificial intelligence (AI), while diversifying into personal loans and credit-score services alongside car financing. Similarly, Spinny has partnered with original equipment manufacturers (OEMs) to build a certified pre-owned electric vehicle (EV) ecosystem as green mobility picks up pace.

A decade after these businesses first emerged, analysts say profitability has remained elusive for the big n...