Cars24, an online marketplace for used cars, has raised $258.6 million as part of its Series F round from existing and three new investors including Zennis Capital B.V., DST Asia VIII and Alpha Wave Ventures, LP., per the company’s latest regulatory filings sourced by DealStreetAsia – DATA VANTAGE.
The company is understood to be looking at raising around $350 million in the proposed round with more investors gearing up to participate. According to an earlier story published by ET, the company is also holding talks with Japan’s SoftBank for raising a part of the amount.
With the latest infusion, the Gurugram-headquartered company’s valuation has shot up to $1.67 billion. The company’s total funding now stands at $660.4 million.
An emailed query to founder Vikram Chopra did not elicit any response at the time of publishing the story.
Cars24 drove into the unicorn club late last year after it raised $200 million in its Series E round at a valuation of over $1 billion. The round was led by DST Global, with the participation from existing investors including Exor Seeds, Unbound, and Moore Strategic Ventures.
Some of the other key investors in the company include like Sequoia India, Kingsway Capital, and KCK (Silicon Valley & New York based investment firm).
The current funding in Cars24 comes in after rival Droom closed the first leg of its pre-IPO round, securing up to $200 million at a valuation of $1.2 billion this July from existing and new investors including 57 Stars and Seven Train Ventures. In the same month, Gurugram-based used car retailer Spinny raised $104 million in Series D round led by New York-based investment firm Tiger Global.
Cars24’s other competitors include CarDekho and CarTrade.
Founded in 2015 with an aim to streamline the buying and selling process of pre-owned cars by leveraging cutting-edge technology, Cars24 operates in over 130 cities in India.
Apart from expanding its presence in India, the company is understood to have earmarked an investment of over $100 million for international markets in 2021. The company recently launched its business in Australia and UAE and is ready to launch business in Southeast Asian and Middle East countries this year. Currently, CARS24 is shipping cars to customers across Dubai, Abu Dhabi and Sharjah and to Brisbane in Australia.
In terms of ramping up headcount, CARS24 is also aggressively looking to strengthen its leadership team in the country. This February, it announced the appointment of Kunal Mundra as CEO, Cars India, CARS24. The company also recently appointed Mrinal Sinha as its chief human resources officer.
CARS24 has also become the first player in the pre-owned vehicle industry to procure a non-banking financial company (NBFC) licence and launch consumer lending business with CARS24 Financial Services and two-wheeler segment BIKES24.
Driven by online technology platforms, the car services and repairs market is estimated to grow at a compounded annual growth rate of 12% to reach $25 billion by 2030, according to a report by Bengaluru-based market research firm RedSeer.