Cars24, one of India’s biggest and most well known platforms for buying and selling used cars and two wheelers, has raised $450Mn at a valuation of $1.84Bn, making it one of the biggest platforms of its kind in the world.
This capital was raised as a combination of a Series F funding round of $340Mn, along with a $110Mn in debt. DST Global, Falcon Edge and SoftBank Vision Fund 2 co-led the Series F, with participation from Tencent and existing investors Moore Strategic Ventures and Exor Seeds. The debt round came from a mix of financial institutions.
Cars24 operates a platform where users can buy and sell used cars, something that we have already mentioned. However, instead of just allowing buyers and sellers to meet (like Olx) on its platform, Cars24 buys directly from those looking to get rid of their old vehicle/s, and then reconditions them. Then, it posts them on its platform, where allowing buyers access to a wide array of quality automobiles.
In this, it becomes a centralized platform for buying and selling cars, ensuring not just high quality, but a seamless experience as well.
Moreover, it also allows users to test out a car for seven days, so they can judge if they really like it or not.
“Cars24 is building a data-enabled tech platform that is organizing the fragmented used car market in India,” said Munish Varma, managing partner, SoftBank Investment Advisers, in a statement. “We have been closely tracking its approach and efforts that have disrupted the used car retailing in India.”
This solution has helped India sort out some major issues with its second hand automobile market (which is how most of India gets its cars), and now, the company plans to expand its offerings to other areas.
With the new fund, Cars24 aims to fuel national as well as international expansion. Moreover, it will also look to expand its technological capabilities (like virtual appraisal process, and more precise data science). Last but not least, it will use the money to buy up more cars for its platform.
Spinny, another marketplace for second hand automobiles in India, had raised $108Mn in a funding round earlier this year. All of this capital infusion in the market shows that cars are here to stay, even with the rising popularity of solutions like Uber and Ola.