Online Used Cars Marketplace Cars24 Nears $250 Million Funding Deal That Could Double Its Valuation
- ByStartupStory | July 2, 2021
India’s leading online marketplace that allows one to buy pre-owned cars is set to raise $200 million to $250 million from existing backers including DST, which may lead the round. Other investors including Moore Capital Management could join the treaty, which could close in a few weeks. The pact could value Cars24 at $1.6 billion to $2 billion, up from about $1 billion in November, when it closed a Series E round. India’s Cars24 Services Pvt. is in conversation with Yuri Milner’s DST Global and other investors for a funding round that could double the company’s value to $2 billion.
The Gurgaon-based startup, was founded in 2015 by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid to make the used-vehicle trade smoother. Buying and selling cars in India has always been a hectic process both in terms of time, paperwork and money. Cars24’s objective is to make the purchase of a pre-owned vehicle as easy as buying a smartphone or a television. It prices vehicles based on AI algorithms and uses data to determine which car would give the new owner least trouble. The vehicles are refurbished in the company’s reconditioning facilities before being listed on its platform. Cars24 has a seven-day no-questions-asked return policy and provides a six-month warranty. It also sells pre-owned motorcycles and scooters and offers financing.
The startup has announced earlier this month that it has expanded to Australia and the United Arab Emirates and plans to tap into other markets as well such as in the Middle East and Southeast Asia this year. In November, Cars24 claimed its website traffic had increased by four times since the start of the pandemic. Its existing investors include Exor Seeds, Kingsway Capital Partners, Sequoia Capital India, and others.
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