{"id":124222,"date":"2021-12-21T05:10:16","date_gmt":"2021-12-21T05:10:16","guid":{"rendered":"https:\/\/fin2me.com\/?p=124222"},"modified":"2021-12-21T05:10:16","modified_gmt":"2021-12-21T05:10:16","slug":"cars24-raises-400-mn-in-funding-valuation-up-83","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/cars24-raises-400-mn-in-funding-valuation-up-83\/","title":{"rendered":"Cars24 raises $400 mn in funding, valuation up 83%"},"content":{"rendered":"
The investment will be utilised for the company’s expansion in West Asia, Australia, and Southeast Asia, and to strengthen its foothold in India.<\/strong><\/p>\n Deepsekhar Choudhury reports.<\/strong><\/p>\n <\/strong><\/p>\n Cars24, an e-commerce platform for pre-owned vehicles, on Monday said it had raised $400 million in its Series G round of funding at a $3.3-billion valuation.<\/p>\n The company’s previous funding round was in September, when it raised $450 million at a $1.84-billion valuation.<\/p>\n The latest round includes $300-million equity funding alongside $100 million of debt from various financial institutions in India, Australia, and the UAE.<\/p>\n The Series G equity round was led by return investor Alpha Wave Global (formerly known as Falcon Edge Capital), along with participation from other existing investors.<\/p>\n The investment will be utilised for the company’s expansion in West Asia, Australia, and Southeast Asia, and to strengthen its foothold in India.<\/p>\n Vikram Chopra, co-founder and chief executive officer of Cars24, said: “The news is just another step in Cars24’s journey; we’re in it for the long haul, and look forward to continuing our work of creating a frictionless consumer experience for used car customers.<\/p>\n “Cars24 has aggressive plans for 2022 and beyond, and we can’t wait to put this investment to work.”<\/p>\n Navroz D Udwadia, co-founder and partner at Alpha Wave, said: “We are excited to back Cars24 yet again as they continue to cement their leadership positions across India, the UAE, Australia and other international markets.<\/p>\n “We believe this investment will help Cars24 fortify its moats even further and scale 10x from here over the next few years.”<\/p>\n The pre-owned car market is set to more than double to 8.2 million units, or $47 billion, over the next five years ending FY26 from 4 million in FY21 or $17 billion.<\/p>\n This means that two used-cars will be sold for every new car bought, according to a report by JM Financial.<\/p>\n The used-car market was 4.4 million units, worth $19 billion, in FY20, a pre-pandemic year, according to the report, which also forecast a clear highway for the used-card market driven by the pandemic-induced demand for personal mobility and affordability because, after BS-VI implementation, the cost of new cars has been on the upswing.<\/p>\n Earlier this month, used-car sales platform Spinny became the fourth tech company in the segment to enter the unicorn club by raising $283 million at a valuation of $1.8 billion.<\/p>\n The other Indian unicorns selling pre-owned cars are CarDekho and Droom.<\/p>\n CarTrade, another platform, went public at a valuation of $980 million earlier this year.<\/p>\n