India’s used-car market has become one bright spot especially since the recent slowdown that impacted the country’s automobile industry. Online market platforms play a vital role in bringing used cars closer to customers. Sellers meanwhile demand transparency in business, ease of understanding, and effective pricing for their automotive assets. Speculating potential growth, many used car platforms are raising funds to strengthen their operations and services.
Cars24, a Gurugram-based used car platform, has reportedly registered a similar investment recently as it raised $100 million in Series D funding round. The company has raised this investment from its existing as well as new investors.
Particularly, the Series D round was led by Unbound, a London-based investment firm and Toronto-based KCK Global, the two companies who invested around $25 million each in this fundraiser. New York-based investment organization, Moore Strategic Ventures has also invested in the company.
Meanwhile, other existing institutional backers who participated in the round include Sequoia Capital, Partners Fund, DST Global, and the Agnelli Family. Reportedly, Cars24’s valuation with this round is yet to be disclosed. In fact, the company has prior raised $100 million across multiple rounds and was valued at around $550 million.
Cars24 sells more than 13,000 cars every month through its online platform. Over the last 4 years, the company has sold around 1.6 lakh cars across the nation, with 150 branches present in 35 cities. Apparently, it aims to mark its presence in 75 cities in India by the end of 2019. With this new investment, it is also planning to set a strong foundation for its NBFC business.
Vikram Chopra, the firm’s Co-founder and CEO, said that they aims to expand their footprint across the nation and offer customers a smooth selling experience. With the help of Cars24's nearest branch, anyone can sell their car at a great price. To achieve this, the company is investing in its technological aspects.
Although the automobile industry in India is facing an economic slowdown, Cars24 has been growing at a rate of 5% every month. Speaking on which, Mr. Chopra said that the company has only 2% of the market share from the $30 billion used car industry, adding that their firm aims to take this number to 20% in the next 5 years.
Source Credit - https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/cars24-has-closed-100-million-in-series-d-funding/articleshow/71624311.cms