Strengthening footprint: Cars24 raises $100 million fresh capital in Series D funding

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Updated: October 18, 2019 5:33:29 AM

The fresh financing will be used to strengthen the footprint of the company in new cities, franchise model, technology and recently-announced consumer lending (NBFC) business, the company said. The firm has so far raised around $150 million-$200 million in funding, according to industry estimates.

Cars24, Strengthening footprint, Cars24, fresh capital, Series D funding, SME, start up, Cars24 posted revenues of over Rs 650 crore in the year to March 2018, higher than the revenues of over Rs 400 crore posted in FY17.

Domestic tech-enabled used car marketplace Cars24 has raised fresh capital of $100 million in its Series D funding round. Along with its existing investors KCK, Agnelli (Fiat) Family and Sequoia India, the company also raised a part of the latest round from Unbound, a global investment firm headquartered in London, and Moore Strategic Ventures (MSV), a New York-based investment firm.

The fresh financing will be used to strengthen the footprint of the company in new cities, franchise model, technology and recently-announced consumer lending (NBFC) business, the company said. The firm has so far raised around $150 million-$200 million in funding, according to industry estimates.

Cars24 posted revenues of over Rs 650 crore in the year to March 2018, higher than the revenues of over Rs 400 crore posted in FY17. Losses in FY18 marginally widened to about Rs 79 crore, compared to losses of Rs 76 crore reported in the year-ago period.

The company that follows an asset-heavy model — wherein it buys cars from individuals and sells them to dealers — is understood to have raised close to $50 million in funding in 2018 from investors including Sequoia Capital India and KCK Global Invest, according to media reports.

Commenting on the investment, Unbound’s founder Shravin Bharti Mittal 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 worldclass customer experience which is quick, easy and hassle-free.”

The pre-owned car company has announced its strategic partnership with former Indian cricket captain Mahendra Singh Dhoni, as brand ambassador and one of the investors in the company. The company is also expanding its geographical presence and has inaugurated outlets across India to strengthen its foothold in the pre-owned car segment. Cars24 is currently targeting to be present in 75 Indian cities across by the end of December 2019.

Founded in 2015, Cars24 claims to sell about 13,500 cars a month, on an average across the country. Competitor CarDekho that also counts Sequoia Capital as an investor raised $110 million in funding in January this year.

“We are changing the transaction ecosystem for the pre-owned car marketplace in India. 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 friction less for all,” said Vikram Chopra, co-founder and CEO, sharing the information on the latest capital infusion.

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