India’s Cars24 nabs $400Mn funding, reaches $3.3Bn valuation

The demand for used cars has surged significantly due to constant interruption of supply chains in the automotive sector during the COVID-19 pandemic. Amidst this surge, one of the leading pre-owned cars platforms, Cars24 has raised a total of $400 million — $300 million equity in a Series G funding along with additional $100 million in debt.

According to sources close to the matter, these funds come three months following its latest round, when it closed $450 million, with $340 million as a Series F and a further $110 million in debt.

As to a budding demand for used cars, the valuation of Cars24 has doubled in a short frame of time, valuing at $3.3 billion compared to $1.84 billion three months ago.

Alpha Wave Global (that co-headed the round under its previous brand, Falcon Edge Capital) is leading this Series G round, with existing investors as participants.

However, Cars24 is not revealing anything related to other investors. Still, the other backers will include SoftBank Vision Fund 2, DST Global, Exor Seeds, Raptor Group, Tencent, Moore Strategic Ventures, Alibaba and around 20 others.

As per claims, Cars24 will have a 90% share of India’s used-car market, and it has gotten there using technology. The firm’s tools include a search engine for people to find vehicles, financing options for vehicles and logistics software to manage and carry out vehicle transfers to new owners subsequently.

Cars24’s CMO, Gajendra Jangid, co-founded the company with Mehul Agrawal, Ruchit Agarwal and Vikram Chopra (the CEO) in Gurugram in 2015. Mr. Gajendra said that the funding would continue to reinforce its presence in India and its expanded countries.

Currently, Cars24 is active in about 200 cities in India, and it claims to be grown by 50% in the last quarter as per the company.

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By Priya Deshmukh

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