Used cars marketplace Cars24 raises $100 mn

Used cars marketplace Cars24 raises $100 mn
Photo Credit: Photo Credit: VCCircle
17 Oct, 2019

Used cars marketplace Cars24 has raised $100 million growth capital from new and returning investors. 

The round saw participation from London-headquartered investment firm Unbound and New York-based investor Moore Strategic Ventures, the company said in a statement.

Existing investors Toronto-based KCK Global, the Agnelli family, founders of Fiat Motors and Sequoia Capital India also participated in the round.

In August, the company had announced a strategic partnership with former captain of the Indian cricket team MS Dhoni who invested an undisclosed amount in the company’s Series D round

Including the current round, Cars24 has raised around $200 million till date, according to media reports.

The Gurugram-headquartered company will expand to new cities, targeting a presence across 75 cities by December 2019. It will also invest in building its franchise model and ramp up consumer lending through its NBFC business which was launched earlier this year.

The company was granted non banking finance company (NBFC) licence by RBI in July for its subsidiary Cars24 Financial Services. 

“Our motive is to expand across India and give our customers a hassle-free selling experience. Any car owner can sell their car at a great price in less than an hour by driving down to the nearest Cars24 branch. To make it a reality, we’ve been investing heavily in making our tech more robust, as well as convenient and frictionless for all,” said Vikram Chopra, co-founder and CEO of Cars24 in the statement issued by the company.

Founded in 2015 by Mehul Agrawal and Chopra after they sold FabFurnish to Future Group, the company has over 10,000 channel partners registered on the platform and plans on doubling the number over the next two years.

The company provides a tech-enabled platform for car owners to sell their vehicles and clocks transaction of 1.5 lakh cars per year. It buys the cars from owners and sells it to dealerships and pre-used vehicle platforms.

"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,” said Shravin Bharti Mittal, founder at Unbound in the statement.

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