Today, the used car market is receiving another massive venture capital infusion as one of the faster scaling India-based startups is slowly doubling its financial growth. We are talking about none other than the Cars24 Financial Year Growth of 2020 that has seen a massive leap in its revenue. Cars24 is a website and an app that purchases and sells used cars and the used two-wheelers.
In the financial year 2020, the company has successfully raised $450 million, $110 million in debt, and a Series F of $340 million. Cars24’s investment values stick at $1.84 billion post-money. The company has stated that the Cars24 Financial Year Growth revenue has made it one of the most valuable used car startups worldwide that is held privately.
Falcon Edge, SoftBank Vision Fund 2, and DST Global have co-led the cars24 Series F. Tencent, and the existing investors like Exor Seeds and Moore Strategic Ventures are also participating. However, the debt round came as a result of the financial institution’s mixture. This current fundraise after the Cars24 Financial Year Growth doubled is now official and confirmed but was rumored in the past couple of weeks but at a relatively small amount. The rumors did not include the debt portion, while some reports were solely based on the regulatory filing for less than the final sum raised.
The CEO of Cars24, Vikram Chopra, co-founded the company in Gurgaon with Gajendra Jangid, Mehul Agrawal, and Ruchit Agarwal, who stated that the plan would be utilized to the funds raised across a wide range of areas.
These include the national and the international exp[ansion that is already functional in India, UAE, and Australia. Their eyes are on several other markets. The broad areas have also taken into consideration the technology, especially the areas such as further expanding the virtual appraisal process as well as other data science revolving around the pricing and several other details related to the sales and post-sales. They will finance both to purchase in vehicles and simultaneously for helping the consumers to make a sound decision in buying a car with viable economic option.
The website Cars24 Financial Services is active in over 200 Indian cities, and it has successfully sold 400,000 vehicles as of now and includes both two-wheelers and four-wheelers. In this process, they took their website to soar with 13 million monthly visitors. All of these incidences are enough to state that the platform is the largest of its kind in the Indian market. However, the ambition of the car marketplace Cars24 is to work on the inefficiencies of selling a car or even buying a used car in various parts of the world and not only just in its home markets.
This is also the sphere where technology and financing work significantly. When the platform was first launched in 2015 in India, Chopra mentioned that the website had faced the additional issue or might be an opportunity of a challenging economic landscape having very low car ownership penetrating in total – only 2% (ideally two cars in every 100 people) compared to typically between the 50 and 80 cars per people in the European countries.
To this, he added that the resale of the cars market currently in India is somewhere around 425 billion. However, it is on track to get to $100 billion in no time.