Cars24 raises $400 million; Company’s valuation pegged at $3.3 billion
Date: 20 Dec 2021
India's leading e-commerce platform for pre-owned vehicles, announced the
closing of a $400M round of funding including a $300M Series G equity round
alongside $100M debt from diversified financial institutions.
This round is Cars24’s
third in just over a year and values the used cars e-commerce player at $3.3
billion, about double the valuation from its previous round in September 2021.
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 also raised a cumulative debt-funding of $100M across India,
Australia, and the UAE.
investment will be utilised to fuel the brand’s global expansion in the Middle
East, Australia and Southeast Asia, and to further strengthen its foothold in
the Indian market. In addition, CARS24 will continue to enhance its superior
technology and build a gold standard for quality used cars globally. In this
pursuit, Cars24 recently announced the launch of seven Mega Refurbishment Labs
(MRLs) in India - an industry first, and one MRL in the UAE which is amongst
Dubai’s largest ever commercial leasing deals.
amid rapid growth, Cars24’s global opportunity remains massive. The accelerated
adoption of Cars24 across Australia, the UAE and Thailand has illustrated the
significance of a used car e-commerce platform experience and is a powerful
indication of its future impact on the $100B industry.
Chopra, Co-founder & CEO, Cars24 said, “Today’s 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 has aggressive plans for 2022 and beyond, and we can’t wait
to put this investment to work. 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.”
in 2015, Cars24 exists to transform the way consumers buy, sell and finance
used cars by leveraging technology at every leg of the consumer journey to
solve genuine pain points and deliver a seamless buying experience.
D. Udwadia, Co-founder and Partner of Alpha Wave | Falcon Edge Capital said,
“We are excited to back Cars24 yet again as they continue to cement their
leadership positions across India, UAE, Australia and other international
markets. Cars24’s robust competitive moats across in-house reconditioning,
access to the widest assortment/supply and deep data science drive a delightful
customer experience, and reflects in its best-in-class NPS. We believe this
investment will help Cars24 fortify its moats even further and scale 10x from
here over the next few years. We remain impressed by the team's vision and
execution, and are delighted to deepen our partnership with Cars24."
rise of online retail around the world remains strong and continues to see
increased support from consumers forecasting record-breaking growth for online
shopping of used cars. By enabling seamless experience and solving genuine used
car customers' pain points, CARS24 is transforming the way consumers buy cars.
As a result, Cars24 has reported a growth of 50% in the last quarter, clocking
over 90% market share in the online used car segment while retaining the market