Cars24 Services, a Gurugram based company that runs a used cars marketplace by the same name, has raised capital from cricketer and former captain of the national team MS Dhoni, as part of its Series D funding round. The sum invested by Dhoni was undisclosed.
Dhoni, the company said in a statement, will own an equity state and become Cars24’s brand ambassador.
The latest infusion comes a little over two months after media reports said that the company was set to raise $105-$110 million in a funding round from existing and new investors.
In July last year, the company had raised $50 million from venture capital firm Sequoia Capital India and existing investors Kingsway FCI Fund and KCK Global.
Last month, Cars24 Financial Services, one of the company’s units, secured a licence to operate as an NBFC (non-banking finance company) to venture into the consumer lending business.
According to media reports, the company is also in the middle of downscaling operations and cutting down on its workforce in an effort to cut costs. As part of this, the company is reported to have shut down outlets in Delhi.
The company was founded in August 2015 by FabFurnish co-founders Mehul Agrawal and Vikram Chopra. The two exited their earlier venture when Future Group acquired the Rocket Internet-backed FabFurnish.com in an all-cash deal.
Cars 24, unlike most other players in the online automotives segment, follows an asset-heavy model. The company buys the cars from individuals and sells them to dealerships and used-vehicle platforms. Consumers looking to sell their cars can get their vehicle evaluated online and then visit the nearest Cars24 branch. On the completion of the physical verification, the company instantly transfers the sum into the bank account of the seller.