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B2B used cars firm Cars24, fintech platform Open may raise fresh funding: Reports

B2B used cars firm Cars24, fintech platform Open may raise fresh funding: Reports
Photo Credit: VCCircle

Gurugram-based Cars24, business-to-business used cars marketplace, is set to close $80 million in a fresh funding round led by its existing investors, The Economic Times reported, citing three people familiar with the development

The company will use the capital to expand its business across India, the report added.

Cars24 is also in talks to raise another $25-30 million from multiple new investors, the report said.

The firm’s existing investors Sequoia Capital, Cayman Islands-based Kingsway FCI Fund and Toronto-based KCK Global, among others are expected to participate in the current round, the ET report said.

E-mail queries sent to Vikram Chopra, co-founder and CEO, seeking more information in this regard did not elicit a response till the time of filing this report.

In July last year, Cars24 had raised $50 million (Rs 343 crore) from the same set of investors.

Cars24 was incorporated in August 2015 by Chopra and Mehul Agrawal, who had earlier founded online furniture and home furnishings store FabFurnish.com. Currently, the Singapore-headquartered firm operates only in India.

The firm, unlike most others in the space, operates on an asset-heavy model. It buys cars from individuals and sells them to dealerships and used-vehicle platforms. People looking to sell their car can get their vehicle evaluated online and then visit the nearest Cars24 branch. On completion of physical verification, the company transfers the sum into the bank account of the seller.

Tiger Global, Yuri Milner’s Apoletto to lead $50-mn round in Open

Bengaluru-based Open, which automates collections and payouts for small businesses, is in advanced discussions to raise around $50-60 million in a round led by New York-based investment firm Tiger Global and Yuri Milner’s Apoletto Asia, The Economic Times, citing two people familiar with the development.

Tiger Global is likely to contribute up to $30 million into Open Financial Technologies Pvt. Ltd, which operates the venture, the report added.

E-mail queries sent to Anish Achuthan, co-founder and chief executive of Open, did not elicit a response till the time of filing this report.

In February, Open had raised $4.6 million (Rs 32.40 crore then) in a Series A round of funding from Singapore-based venture fund Beenext and early-stage venture firm 3one4 Capital.

The company was founded in 2016 by entrepreneurs Achutan, Ajeesh Achutan, Mabel Chacko and former TaxiForSure CFO Deena Jacob, who joined the company as chief financial officer and director in 2017.

Open partners with banks to offer accounting automation, cash flow management and automated collections and payouts for small businesses. It also offers application programming interfaces (APIs) to developers for integrating banking and payments in the business workflow. It helps small businesses automate invoicing, taxation and GST filings and provides expense cards for business spends.

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