Cars24 has closed $100 million in Series D funding
Lead investors Unbound and KCK Global put in $25 million each.
A second new investor, New York-based investment firm Moore Strategic Ventures, has also joined the Singapore and Gurugram-based company’s cap table.
The lead investors in the Series D round are Unbound and Toronto-based KCK Global, an existing investor in Cars24, both of which have put in an estimated $25 million each.
While its valuation after the latest round was not disclosed, Cars24, which had earlier raised $100 million across multiple rounds, was reported at the time to have been valued at about $550 million.
For technology-focused Unbound, the investment in Cars24 is likely to be its first in India. The Grosvenor Square headquartered firm has made six investments till date, according to CB Insights, stretching across seed to Series B rounds.
Apart from KCK, other existing institutional backers of Cars24, including Sequoia Capital, partners of DST Global and the Agnelli Family, which owns Italian auto manufacturing giant Fiat and football club Juventus FC, have also participated.
The Agnelli Family had invested in Cars24 through Exor Seeds, a fund associated with EXOR N.V, one of Europe’s leading diversified holding companies, and which is controlled by the business dynasty.
The developments come a little over five months after ET reported that Cars24, which was founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal, was in talks to raise about $80 million in fresh financing.
“The priority is to scale the business right now. We are in 50 cities currently, and will be ending the current calendar year at 75 cities. By the end of 2020, we expect to be in 200 cities… There is a long tail in India when it comes to expansion. The top-75 cities only contribute around 65% of our action,” Agrawal, chief operating officer at Cars24, told ET.
The company’s business model differs from peers as it focuses more on the supply side. It allows car owners to sell their vehicles, paying them almost instantly, post the necessary vehicular inspection at its 170 branches across the country. It then sells the cars through its proprietary auction platform to businesses dealing in pre-owned vehicles.
The latest fundraising comes a few months after Cars24 received its non-banking financial company license from the Reserve Bank of India.
“We have already started building our book on the consumer lending side, and that is something we are extremely bullish on, in terms of the value it can create for the ecosystem,” Agrawal said. Cars24 curently claims to do about 13,500 transactions monthly, with an average order value of Rs 3.5 lakh.
India’s used car market is estimated at about $25-$30 billion, and sees about 5 million transactions annually.