CARS24, the Indian tech-enabled used car marketplace, has announced that it has raised fresh capital of $100 million (Rs 710 crore) in its Series D round of funding. Along with its existing investors – KCK, Agnelli (Fiat) Family and Sequoia India – the company also raised a part of the latest round from Unbound, a global investment firm headquartered in London, and Moore Strategic Ventures, a New York-based investment firm.
The fresh financing will be used to strengthen the footprint of the company in new cities, franchise model, technology and recently announced consumer lending (NBFC) business. CARS24 also has a strategic partnership with former Indian cricket captain Mahendra Singh Dhoni, who is an investor in the company.
The company, which is expanding its geographical presence and opened outlets across India to strengthen its foothold in the pre-owned car segment, is targeting a presence in 75 Indian cities across by end-December 2019.
“We are changing the transaction ecosystem for the pre-owned car marketplace in India. With this investment, we have not only strengthened our vision to become India’s largest pre-owned automobile company but have also given one more reason to our customers to have faith in us. Our motive is to expand across India and give our customers a hassle-free selling experience. Any car owner can sell his/her car at a great price in less than an hour by driving down to the nearest CARS24 branch. To make it a reality, we have been investing heavily in making our tech more robust, as well as convenient and friction less for all,” said Vikram Chopra, co-founder and CEO.
Commenting on the investment, Unbound’s founder, Shravin Bharti Mittal said, "We believe CARS24 is disrupting the pre-owned car industry in India and addressing the challenges faced by car owners by providing them with a world-class customer experience which is quick, easy and hassle-free."
At present, CARS24 has over 10,000 channel partners registered on its platform. It aims to increase the network to over 20,000 partners over the next two years. CARS24 says it has been actively launching operations in many Tier 2 and Tier 3 cities. The company claims it witnesses transactions of 150,000 cars per annum and is now targeting a million transactions annually by the end of 2021. As a part of its expansion plan, CARS24 launched a franchise business model and diversified into the consumer lending business earlier this year.