Cars24, a used car retail platform, raises $400M at a valuation of $3.3B

Gurugram-based Cars24, a used car retail platform, today announced the closure of a $400 million funding: including a Series G round of $300 million in equity and $100 million further in debt from diversified financial institutions.

The Series G round, which almost doubled the startup's valuation to $3.3 billion, was led by existing investor Alpha Wave Global (formerly known as Falcon Edge Capital) and other undisclosed investors.

Earlier three months ago, Cars24 had raised $340 million in its Series F round at a valuation of $1.84 billion with participation from a bunch of investors, including Falcon Edge, Softbank VF, Tencent, DST Global, Alpha Wave Incubation, among others.

Founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal, Cars24, through its online platform allows consumers to buy, sell and finance used cars.

With this round of funding, Cars24 will strengthen its footprint in the Indian market and will invest in global expansion in the Middle East, Australia, and Southeast Asian region. Additionally, The startup will continue to enhance its technology and build a standard for quality used cars globally.

In this pursuit, It has recently announced the launch of seven Mega Refurbishment Labs (MRLs) in India and one MRL in the UAE which is amongst Dubai’s largest ever commercial leasing deals. 

The accelerated adoption of Cars24 services across Australia, the UAE, and Thailand has illustrated the significance of a used car e-commerce platform experience and is a powerful indication of its future impact on the $100 billion industry, the startup said.

Speaking on the fundraise, Vikram Chopra, Co-founder & CEO of Cars24, said: "Today’s news is just another step in CARS24’s journey; we’re in it for the long haul, and we look forward to continuing our work of creating a frictionless consumer experience for used car customers.

"CARS24 has aggressive plans for 2022 and beyond, and we can’t wait to put this investment to work. Today, we are witnessing greater acceptance amongst customers across the globe for our platform when purchasing their next car. As we continue to build the best infrastructure for the future with an end-to-end digital customer experience, we are confident that this will delight our customers with our high-touch industry experience," Vikram adds.

Apart from its primary service offerings, Cars24 is also expanding its footprint in finance. The startup claims to be the only player in its category with a banking license and it’s been using that to create payment schemes for customers. Like car ownership itself, this represents another area of currently-underserved opportunity.

“CARS24’s robust competitive moats across in-house reconditioning, access to the widest assortment/supply, and deep data science drive a delightful customer experience and reflect in its best-in-class NPS. We believe this investment will help CARS24 fortify its moats even further and scale 10x from here over the next few years. We remain impressed by the team’s vision and execution and are delighted to deepen our partnership with CARS24," said Navroz D. Udwadia, co-founder & partner of Alpha Wave, in a statement.

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