Cars24 has raised $200 million in its Series E round, taking the company’s valuation to over $1 billion.
This is 2X jump in Cars24’s valuation in a year.
With this fund-raise, the startup joined the unicorn club, and claimed it is the only startup in the mobility sector to achieve a unicorn valuation.
Founded in 2015, CARS24 is a tech-enabled used cars disruptor.
It is India’s largest platform for buying and selling used cars with presence across more than 133 major cities in India.
The company had received an NBFC license last year for its financing business with two-hour disbursals.
The company had also received a legal notice from a clutch of landlords for alleged defaults of payments and had to shut down various stores in the NCR region.
Who are the investors?
The funding round has been led by billionaire Yuri Milner’s fund DST Global that also pumped in $122 million into edtech startup Byju’s earlier this year.
Existing investors also participated in the round Including Exor Seeds, Unbound and Moore Strategic Ventures.
Where the fund will be use?
The fresh funds proceeds will be deployed towards building new business verticals and strengthening its product and technology capabilities.
Performance of the Company
Cars24 already claims to have transacted over 3,000 two-wheelers until now.
Company claims that the company’s transaction volume has surpassed its pre-Covid volumes by more than 20% and the month-on-month sales stand at around $50 million with over 15,000 cars transacted every month.
Earlier this month, Cars24 announced that it’s offering ESOPs cash-out scheme worth Rs 35 crore to its employees.
Comment from Co- founder and CEO
“Tradionally selling or buying cars has been a tiresome process.
But, in the past five years, we have strived to transform the customer’s journey the CARS24 way, which is hassle-free, safe and transparent.
With this investment, we will continue to innovate our product and bolster our capabilities to provide the best experience for all parties – with sellers getting the best value for their car, and buyers getting to choose from a wide assortment of automobiles,” Vikram Chopra.
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