Cars24, an Indian online marketplace that allows users to buy and sell used automobiles and two-wheeler motorcycles, has reportedly announced that it has raised more than $450 million in investment, through a $340 million Series F round and $110 million in debt.
According to the company, the latest investment values it at approximately $1.84 billion post-capital, making it one of the world’s most valuable privately held second-hand vehicle startups.
Tencent and previous investors Moore Strategic Ventures, and Exor Seeds also participated in the Series F, which was co-led by DST Global, Falcon Edge, and SoftBank Vision Fund 2. Meanwhile, the debt round was raised from a number of financial institutions.
According to Vikram Chopra, Cars24 CEO, who co-founded the firm in Gurugram with Ruchit Agarwal, Gajendra Jangid, and Mehul Agrawal, the investment would be used in a variety of sectors.
This includes domestic and international growth; the company is already present in India, Australia, and the United Arab Emirates, with plans to expand further; technology and financing, both to purchase vehicles and to assist consumers in making purchases.
Cars24 operates in over 200 Indian cities and has sold over 400,000 vehicles so far, with over 13 million visitors a month to its website. All of this makes it the largest platform of its type in India. However, the company’s goal is to reduce the inefficiencies of selling or purchasing a used automobile in many areas of the world, not simply its home market.
Chopra stated that selling or buying a car is difficult everywhere on the globe, labelling it as a broken experience, and Cars24 working to fix it.
Chopra added that when Cars24 originally launched in India in 2015, it had the additional challenge of a difficult economic situation with extremely low total automobile ownership penetration. Only 2%, or 2 vehicles per 100 people, compared to Europe's average of 50 to 80 cars per 100 people. The company wants to take this penetration to at least 10 or 15.
Today, India’s car resale market in is valued at around $25 billion, however, it is on its way to soon become a $100 billion industry.