Gurugram-based Cars24, an online marketplace for buying and selling used cars, has raised about $50 million (Rs 340 crore) from venture capital firm Sequoia Capital India, also an investor in its rival CarDekho, reported The Economic Times on Wednesday.
The investment proceeds will be used by the company to fund its expansion plans, the report said quoting sources.
Cars24’s existing investors – Cayman Islands-based Kingsway FCI Fund and Toronto-based KCK Global – also participated in the latest funding round. The round is expected to have valued the company at $250 million.
Founded by former FabFurnish founders Mehul Agrawal and Vikram Chopra, Cars24 follows an asset-heavy customer-to-business (C2B) model, where it buys used cars from individuals and dealers and sells them to other dealerships. Cars24 enables the end-to-end transaction itself, charging a commission of about 4-5% for each transaction. One can also get an estimated value of his car by using a simple price valuation tool on the CARS24 website.
The firm has sold under 1,00,000 cars since inception, the newspaper reported. It has further grown from one office in Delhi to 50+ branches across 10 major cities in India, according to Crunchbase data.
Previously, Cars24 had raised about $50 million from global investors including Russian billionaire Yuri Milner’s Apolletto Asia and Venture Highway, amongst others. Its other competitors in the used car space include Temasek-backed CarTrade, Toyota-backed Droom, Quikr Auto and Olx in the online auto marketplace space.
In March this year, Sequoia had also led a $2.5 million Series B funding round in CarDekho, taking the company’s total funding to more than $70 million since its inception ten years ago. Last year in February, CarTrade had raised $55 million (about Rs. 366 crore) in a fresh round of funding co-led by existing backer Temasek and a US-based family office.