Companies

Cars24 closes $400 million funding at a valuation of $3.3 billion

BL Bengaluru Bureau | | Updated on: Dec 20, 2021

This is almost double the valuation from the company’s previous round in September 2021

Cars24, an e-commerce platform for pre-owned vehicles, has closed a $400 million funding round which includes a $300 million Series G equity raise and a $100 million debt from diversified financial institutions.

This fundraise has valued the company at $3.3 billion, which is almost double the valuation from the company’s previous round in September 2021. The Series G equity round was led by Alpha Wave Global (formerly known as Falcon Edge Capital) along with the participation from other existing investors.

Fund deployment

The investment will be used to support the brand’s expansion in the Middle East, Australia, and Southeast Asia, and to strengthen its India presence. In addition, Cars24 will also invest in enhancing its technology. Cars24 has recently announced the launch of seven Mega Refurbishment Labs (MRLs) in India and one MRL in the UAE.

Speaking on the development, Vikram Chopra, Co-founder and CEO, Cars24 said, “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.”

Navroz D Udwadia, Co-founder and Partner of Alpha Wave | Falcon Edge Capital said, “We are excited to back CARS24 yet again as they continue to cement their leadership positions across India, UAE, Australia, and other international markets. 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 reflects 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.”

Founded in 2015, CARS24 aims to transform the way consumers buy, sell and finance used cars by leveraging technology at every leg of the consumer journey to solve genuine pain points and deliver a seamless buying experience. Cars24 has reported a growth of 50 per cent in the last quarter and claims to have over 90 per cent market share in the online used car segment. Cars24 competes with players like Ola Cars, CarDekho, and CarTrade in the used cars retail market.

Published on December 20, 2021
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