India’s largest online marketplace for used automobiles, Cars24 Services has closed a $450 million round of funding that has almost doubled its valuation to $1.84 billion. The company plans to use the money from this largest funding till date, to expand into the UAE and Australian markets and build its cars, bikes and financing business in India, while continuing to invest in technology.
The funding includes a $340 million Series F equity round, coupled with $110 million debt from multiple financial institutions, the company said on Monday. The round was led by DST Global, Falcon Edge and SoftBank Vision Fund 2 along with participation from Tencent and existing investors Moore Strategic Ventures and Exor Seeds, reported Mint.
The market for new cars in India, the world’s fifth-largest, has been roiled by production issues during the pandemic. Investors say this is creating opportunities for second-hand vehicles, particularly the relatively young online market. Cars24 is India’s largest website for used vehicles.
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Vikram Chopra, co-founder and CEO of Cars24 said, “Traditionally, car selling or buying have been a tiresome process, and only 2 of 100 people own cars in India. However, over the last six years, we have been working continuously towards fulfilling the dreams of many Indians to own a car by transforming the customer’s journey- ‘the CARS24 way’ that is hassle-free, safe and transparent.
Rahul Mehta, Managing Partner at DST Global said, “Cars24 is at the forefront of transforming the way consumers buy and sell cars by providing a unique end-to-end digital shopping and transaction experience. They have emerged as the undisputed leader in the used car space in India and early traction in international markets is exceeding expectations.
Navroz D Udwadia, co-founder of Falcon Edge Capital, points to the aggressive scaling of the business during the pandemic. According to him, Cars24 has cemented its first-mover advantage by building wide-ranging supply side moats, which in turn drive demand. “It is rare to find a business as focused on the consumer experience and as driven to ensure it is outstanding via the use of data science and technology,” he says.
The company has already sold over 1000 cars in the UAE since the launch of its operations in April this year. Cars24 also officially announced its launch with a new campaign last week in Australia.
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