Gurugram-headquartered online used car marketplace Cars24 has raised as much as $100 million (about Rs 714 crore) from a slew of new and existing investors, according to an announcement.
This marks the Series D round of funding for the startup established in 2015. The company is understood to have raised as much as $100 million across multiple rounds earlier.
The current round of funding is said to have been led by London-based investment firm Unbound and Toronto’s KCK Global with the participation of New York-based investment firm Moore Strategic Ventures, Sequoia Capital, and the Agnelli (Fiat) Family, among others.
For the uninitiated, Unbound is an investment firm led by Bharti Airtel scion Shravin Mittal.
Both Unbound and Moore are new investors in Cars24, while KCK Global and others are its existing investors.
Cars24, that claims to revolutionise the way used cars are sold in India and paves the way for car owners to sell their cars rather instantly, currently has many as 168 branches and is present over 48 cities in India. The company plans to target 75 cities by the end of December.
“We are changing the transaction ecosystem for the pre-owned car marketplace in India….Our motive is to expand across India,” said Vikram Chopra, co-founder and CEO at Cars24. “Any car owner can sell their car at a great price in less than an hour by driving down to the nearest CARS24 branch. To make it a reality, we’ve been investing heavily in making our tech more robust, as well as convenient and friction less for all.”
The corpus raised will be used by the company to expand in new cities, strengthen its franchise model and spruce up its technology, among others.
Interestingly the transaction signals a growing investor interest in the online car marketplace segment at a time when the country is staring at a slowdown in terms of automobile sales. Online car sellers, however, currently comprise a fraction of the overall market.
The market for pre-owned cars registered a growth over the past few years from 0.8 time of new cars in 2012 to 1.2 times in the 2018-19 fiscal, according to a recent report by Edelweiss Securities. It currently stands at about $25-$30 billion.