India-based online platform to sell second-hand cars CARS24 raised US$200 million on 24 November 2020 in a Series E funding round.
The funding round was led by DST Global. Other participants include existing investors, Exor Seeds, Moore Strategic Ventures, and Unbound. Previously, Cars24 had also raised funds from Apoletto Asia- the personal investment vehicle of DST’s head- Russian Israeli billionaire Yuri Milner. The company is the latest addition to the growing list of unicorns in India with its valuation crossing the US$ 1billion mark in the current round.
The investment will be utilized towards technology and product innovation. It will also be used for scaling new business verticals.
About Cars24
Founded in 2015 by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid, Cars24 has been deeply leveraging data and technology, resulting in world-class operational efficiency and market leadership. The company claims to have sold over 200,000 cars on its platform this year and engagement on its website is up four times compared to the previous year.
“Traditionally, car selling or buying has been a tiresome process, however, over the last five years, we have strived to transform the customer’s journey- ‘the CARS24 way’ that is hassle-free, safe and transparent. With this investment, we will continue to innovate our product and bolster our capabilities to provide the best experience for all parties – with sellers getting the best value for their car, and buyers getting to choose from a wide assortment of automobiles.” Said Vikram Chopra, Co-founder and CEO of Cars24.
The company had entered into the used two-wheelers segment in May 2020. It claims that it has already transacted over 3,000 two-wheelers. CARS24 had also acquired an NBFC license in 2019 to provide access to credit to customers. Some of the competitors of Cars24 are Carwale, CarTrade, Droom, CarDekho, Spinny and others.
The used car market in India is likely to grow at a CAGR of 15.12 percent during 2020-2025 (According to data from market research firm Mordor Intelligence). In 2019. India faced an automobile slowdown as demand fell, but the used car segment has still been growing strongly.
DST Global has been actively funding Indian startups this year. It has invested in online education firm Byju’s, Cars24 and is still scouting for more deals.
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