Cars24 Raises $259 Million In Funding At Around $1.75 Bn Valuation
Cars24, an online marketplace for used automobiles, has raised $258.6 million in its latest funding round from eight investors.
First reported by Entrackr, DST Asia, Alpha Wave Incubation and Tencent (via Zennis Capital BV) have put in $75 million each in this funding round. As per the company’s regulatory filings in Singapore, Moore Strategic Partners has invested $22.7 million.
Existing investor Exor Seeds has invested $8.3 million, whereas HPS Investment Partners’ chief executive officer Scott Kapnick and BloombergSen Investment Partners have invested $2.2 million and $472K, respectively, in the Gurugram-based startup.
Cars24 | Buy Or Sell Your Car With Ease
Founded by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal, Cars24 is a Gurugram-based eCommerce platform for pre-owned autos (cars and bikes).
The Gurugram-based startup provides the best experience for car buyers by offering a wide range of certified cars that are home delivered with a click of a button, meanwhile providing sellers with the best price for their vehicles in less than 1 hour.
In November 2020, Cars24 became the first startup from the used car space to enter the coveted unicorn club with a little over $1 billion valuation. As per Fintrackr by Entrackr, Cars24 had shrunk its losses by 125% to Rs 285 crore in FY20. Additionally, its operating revenue grew 82% to Rs 1,687 crore in FY20.
Rise Of Pre-owned Cars Market In India
The mobility industry in India has been witnessing a growing trend in the pre-owned cars segment. Backed by the affordability factor, the demand for pre-owned cars is growing in India, especially among the Millenials.
In a recent report by research firm Frost & Sullivan and commissioned by Volkswagen India, it was revealed that pre-owned car sales in India are currently 1.5 times more than new car sales. The report added that the gap is set to increase in the coming years as pre-owned car sales in India are projected to outnumber new car volumes by over 2:1 by FY2025.
According to a report by P&S Intelligence, the used car market in India is expected to reach USD 70.8 billion in 2030 from USD 18.3 billion in 2020.
For more stories of startups, click Startup Stories.