India’s biggest online marketplace for second-hand automobiles, Cars24 Services, has sealed a $450 million round of funding that has almost doubled its estimate to $1.84 billion. The budget includes a $340 million Series F equity round, joined with $110 million debt from various financial institutions, the company said on Monday.
The Series F equity round was led by DST Global, Falcon Edge and SoftBank Vision Fund 2, and assistance from Tencent and existing investors Moore Strategic Ventures and Exor Seeds. Cars24 intends to use the money from this largest funding to develop into the UAE and Australian markets and produce its cars, bikes, and financing business in India while spending on technology.
Vikram Chopra, co-founder and CEO of Cars24, said to Mint, “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. With this investment, we will continue to penetrate into existing car, bikes and financing business in India while venturing into new overseas geographies this year.”
The company has sold over 1000 cars in the UAE since the launch of its services in April this year. Cars24 also officially declared its launch with a new campaign last week in Australia.
Rahul Mehta, the Managing Partner at DST Global, said to Mint, “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. We love backing founders who are bold and ambitious thinkers and couldn’t be more excited to enter the second innings of our long-lasting partnership with CARS24.”
“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. Finally, we are deeply impressed by the founders’ leadership and are thrilled to back them as they transform the used car industry in India and scale internationally across MENA andPolo SE Asia,” said Navroz D. Udwadia, co-founder of Falcon Edge Capital to Mint.
The startup, based in Gurgaon on the outskirts of New Delhi, was founded in 2015 by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid.