Gurugram-based online used car marketplace, Cars24 has raised $100 million in an ongoing Series D round from multiple investors, a major portion of which is contributed by Moore Strategic Ventures and Unbound Global.
KCK FZE , a Dubai-based cargo company has also invested about $25 million along with Cars24’s pre-existing investor Kingsway FCI which has invested $10 million in the Series D round.
As per Cars24, it will use the strengthen the company’s footprint in new cities, scale franchise model, technology and the recently announced consumer lending (NBFC) business.
The details of the investments in the series D round were revealed to the public by Cars24’s parent entity – Global Cars Group Pte Ltd in Singapore.
Speaking on the latest capital infusion, Vikram Chopra, Co-founder and CEO, of CARS24, said-
We are changing the transaction ecosystem for the pre-owned car marketplace in India. With this investment, we have not only strengthened our vision to become India’s largest pre-owned automobile company but have also given one more reason for our customers to have faith in us.”
At present, the company has over 10,000 channel partners registered on its platform and it intends to increase the network to more than 20,000 partners over the next two years.”
One of the early backers of Cars24, Sequoia India has also invested an amount of $5 million in the Series D round. Euler Capital, a Chicago-based global asset management and investment services firm too has invested an amount of $4.63 million in Cars24.
Exor Seeds and Freemark Holdings , which are based in New York have invested $3 million each, while Scott Bankcraft Kapnick, CEO at Highbridge Capital Management LLC and HPS Investment Partners LLC has put in about $1.4 million.
To gain additional funding, the company has filed for a resolution via RoC with the Ministry of Corporate Affairs (MCA), which has helped in raising Rs 309 crore of fresh funding from the holding entity.
To summarise, the company has already received an aggregate investment worth $52 million in the first segment of the Series D round. This amount has already been absorbed by the startup’s operating body.
The ongoing round is likely to be closed between $90 to 100 million.
Shravin Mittal the founder and CEO of London-based VC firm, Unbound said –
We believe CARS24 is disrupting the pre-owned car industry in India and addressing the challenges faced by car owners, by providing them with a world-class customer experience which is quick, easy and hassle-free.”
Cars24 is one among the many competitors playing in the hybrid used car sector, which includes both the buying and the sales of used cars of hybrid categories through both online and offline platforms.
The startup has been continuously going through a toe-to-toe competition with several other players in the same segment ready to grab the prize. Many entities are now ready to make a market share of their own by adoption of different business models.
The startup competes with the likes of OLX and CarDekho’s Gaadi, which recently ventured into the used car segment, a model akin to Cars24’s core premise.
Due to this, these three companies compete vigorously against each other and thus need a consistent acquisition of capital or funding. Other notable competitors in the sector include Spinny and Droom.
The current funding round for Cars24 has come after 15 months of its previous round. The company had raised about $50 million from 16 investors, including Apoletto Asia, Venture Highway among others and had recently onboarded Indian sports icon MS Dhoni as an investor and celebrity endorser.