Cars24 raises $400 mn in funding, valuation up 83% at $3.3 bn in 3 months
- IBEF
- December 21, 2021
Cars24, an online seller of used cars, said on Monday that it has secured US$ 400 million in fundraising at a valuation of US$ 3.3 billion, which it will use to grow its company.
The Series G round of fundraising includes US$ 300 million in equity and US$ 100 million in debt from financial institutions in India, Australia, and the United Arab Emirates. Return investor Alpha Wave Global (formerly known as Falcon Edge Capital) led the equity round, which included participation from several existing investors.
The funds will be used to expand in the Middle East, Australia, and Southeast Asia, as well as to improve its position in the Indian market, according to the business. The company's most recent investment round took place in September, when it secured US$ 450 million at a valuation of US$ 1.84 billion.
“Today’s news is just another step in Cars24’s journey; we’re in it for the long haul, and we look forward to continuing our work of creating a frictionless consumer experience for used car customers. Cars24 has aggressive plans for 2022 and beyond, and we can’t wait to put this investment to work,” said Vikram Chopra, co-founder and chief executive officer of Cars24.
“We are excited to back Cars24 yet again as they continue to cement their leadership positions across India, UAE, Australia and other international markets. We believe this investment will help Cars24 fortify its moats even further and scale 10x from here over the next few years," said Navroz D Udwadia, co-founder and Partner at Alpha Wave.
According to a survey by JM Financial, India's pre-owned automobile industry is expected to more than double to 8.2 million units or US$ 47 billion in the next five years, ending in FY26, from 4 million units or US$ 17 billion in FY21, implying that two used cars would be sold for every new car sold.
Spinny, a used automobile sales platform, became the fourth tech startup in the area to raise US$ 283 million at a valuation of US$ 1.8 billion earlier this month, making it the fourth unicorn in the segment. CarDekho and Droom are two more Indian unicorns that sell used vehicles. In 2021, another platform, CarTrade, went public with a US$ 980 million value..
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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