In the post-pandemic world, there’s been a surge in the used-car market. So, it doesn’t come as a surprise when pre-owned car marketplace CARS24 has raised $400 million (approximately Rs 3,040 crore) in its Series G round of funding at a $3.3-billion valuation. This comes after September when the startup raised $450 million at a $1.84-billion valuation.
The company will use the funding for expansion in Australia, West Asia, and Southeast Asia, and also to further strengthen its foothold in India.
The Series G equity round was led by return investor Alpha Wave Global (formerly known as Falcon Edge Capital) along with participation from other existing investors, CARS24 stated. CARS24 raised a cumulative debt-funding of $100 million across India, Australia, and the UAE.
“This news is just another step in CARS24’s journey. We’re in it for the long haul, and we look forward to continuing our work of creating a frictionless consumer experience for used car customers,” CARS24 co-founder and CEO Vikram Chopra said.
CARS24 has grand plans for 2022 and beyond, and the company cannot wait to put this investment to work, said Chopra. “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,” he added.
Chopra said the reason to raise the funding was the belief in the CARS24 team that can “create the best consumer experiences for customers while buying and selling a car.”
“We can win and win big. Let’s make this bet work,” he said. Chopra also mentioned that few companies can drive growth and unit economics simultaneously, and fewer companies have managed to succeed across several geographies.
Gajendra Jangid, the co-founder of CARS24, recalled how six years ago they had started the company and a lot of doubts were raised about being an asset-heavy business and owning the transaction instead of facilitating the transactions. “We fundamentally believe whatever it takes to solve genuine consumer pain points, we will go right in without second thought. We have never shied away from taking bolder bets which ultimately deliver value to customers and improve their experience. This round is a validation of that philosophy that has taken us to where we are today,” he said. He then took a moment to thank all the customers, partners and employees for the continuous growth. “A shout out to all our customers to whom we got a chance to serve, to all our partners who have been with us through thick and thin, to all our employees and alumni who have worked tirelessly on our growth journey. A deep sense of gratitude for everyone,” Jangid said.