Used cars, used cars, Unicorn startups: Cars24 raises $ 450 million in biggest funding round
(From left to right) Co-founders of Cars24 Gajendra Jangid, Ruchit Agarwal, Mehul Agrawal and Vikram Chopra
Image: Amit Verma
OUsed car and bicycle sales unicorn nline Cars24 has raised $ 450 million (Rs 3,685 crore) as part of the Series F funding round, which includes $ 340 million (Rs 2,506 crore) in equity led by DST Global, Falcon Edge and SoftBank Vision Fund 2, and $ 110 million (Rs 811 crore) in debt from diversified financial institutions. The latest cycle, the largest for the six-year startup, also saw participation from Tencent and existing investors such as Moore Strategic Ventures and Exor Seeds.
The investment would be used to expand the global presence as well as accelerate cars, bikes and fundraising activities in India.
“Our business is capital intensive,” says Vikram Chopra, co-founder and CEO of Cars24 in an exclusive interaction with Forbes India. Cars24 has a reconditioning capacity of over 20,000 cars in Delhi, Mumbai, Bengaluru and Hyderabad. The company, he says, needs a lot of capital investment to set up warehouses, reconditioning units and logistics to move the cars. “In the past three months, business in India has grown by 50%,” he says. The company, he claims, has a turnover of over $ 1 billion (Rs 7,370 crore).
Cars24’s international activities, which started earlier this year with the United Arab Emirates and Australia, also peaked. “They now represent 10% of income,” says Chopra.
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