Cars24, an e-commerce platform for pre-owned vehicles, Monday announced that it has closed a funding round of $450 million, including a $340 million Series F equity round alongside $110 million debt from diversified financial institutions.
With the latest infusion, the Gurugram-headquartered company’s valuation has shot up to $1.84 billion.
Earlier this month, DealStreetAsia had reported about Cars24’s fundraising exercise – the company had then garnered $258.6 million as part of its Series F round from existing and new investors.
With the latest investment, CARS24 will expand its global presence as well as further build its cars, bikes and financing business in India, while continuing to invest in technology that delivers the best customer experience possible, it said in a statement.
“Traditionally, car selling or buying have been a tiresome process, and only 2 of 100 people own cars in India. However, over the last six years, we have been working continuously towards fulfilling the dreams of many Indians to own a car by transforming the customer’s journey- ‘the CARS24 way’ that is hassle-free, safe and transparent. With this investment, we will continue to penetrate into existing car, bikes and financing business in India while venturing into new overseas geographies this year,” said Vikram Chopra, Co-founder & CEO, Cars24.
The latest infusion comes just months after Cars24’s expanded into the UAE and Australian markets. The company claims to have already sold over 1000 cars in the UAE since the launch of its operations in April this year.
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. The company claims to have a 90% market share in the online used car segment, and has clocked more than 13 million monthly traffic and over 4 lakh transactions to date.
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.
Cars24 competes with the likes of Droom, CarDekho and CarTrade.
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.