CARS24 said on Monday that it has raised $450 million (about ₹3,321.3 crore) in funding from DST Global, Falcon Edge, SoftBank Vision Fund 2, and others. The funding helped the pre-owned vehicles e-commerce platform nearly double its valuation to $1.84 billion.
“The series F round of funding was a mix of equity ($340 million) and debt ($110 million),” a statement said. “The equity 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,” it added.
The debt funding came from diversified financial institutions. “With the latest investment, CARS24 will expand its global presence as well as further build its cars, bikes and financing business in India, while continuing to invest in technology that delivers the best customer experience possible,” the statement said.
CARS24 has clocked more than 13 million monthly traffic and over four lakh transactions till date. It has also procured a non-banking financial company’s (NBFC) license and launched consumer lending business with CARS24 Financial Services and two-wheeler segment, BIKES24. It is backed by marquee investors like Sequoia India, SoftBank, Falcon Edge, Exor Seeds, DST Global, Kingsway Capital, Unbound, Moore Strategic Ventures and KCK.
Also read: Why has another US carmaker run out of gas in India?
The company had previously raised close to $400 million, including USD 200 million in series E round announced in November 2020. The CEO and co-founder of CARS24 Vikram Chopra said that the six-year-old company has closed ‘its largest round of funding to date’.
“Traditionally, car selling or buying have been a tiresome process, and only two 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 customers journey ‘the CARS24 way’, that is hassle-free, safe and transparent,” Chopra said.
Chopra also said that with the investment, the company will continue to ‘penetrate into’ existing car, bikes, and financial business in India while ‘venturing into new overseas geographies this year.’
The funding comes just months after CARS24’s expansion into the UAE and Australian markets. The company has already sold over 1,000 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.
Rahul Mehta, managing partner at DST Global, said that 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,” Mehta added.
Also read: For the first time, Tata may appoint a CEO ‘to expand further’
Munish Varma, managing partner at SoftBank Investment Advisers, said that CARS24 is building a data-enabled tech platform that is organising the fragmented used car market in India.
The start-up, which is based in Gurgaon, on the outskirts of New Delhi, was founded in 2015 by Vikram Chopra, Ruchit Agarwal, Mehul Agrawal, and Gajendra Jangid, and is active in more than 200 cities in India. It has sold 400,000 vehicles to date (both cars and motorbikes) with and is seeing a rise of 13 million monthly visitors on its site.
(With inputs from Agencies)