Cars24 intends to secure $350mn fund & raise it valuation to $2-billion
Online platform selling used cars, Cars24 is in the final stages of concluding a $300-350 million funding led by existing investor DST Global with new investors like Falcon Edge Capital, Carlyle and SoftBank Vision Fund, joining the round, according to the sources aware of the advancement.
The funding discussion has been held at a $1.6 billion valuation, says the sources. After the financing the company would be valued at $2 billion.
In November last year, the used car marketplace drove into the unicorn club after securing $200 million at a valuation of more than $1 billion. DST Global, which has backed Indian startups like Swiggy, Udaan, Ola and Byju’s, also led the previous round.
Since the Covid-19 virus outbreak, the company has seen wider demand for used vehicles. It has been planning to offer new services like sale of two-wheelers and provide after sales services as well. Exor Seeds, Moore Strategic Ventures, and Unbound are among its existing investors.
Established in 2015, Cars24 has annualised sales of $600 million lately last year compared to around $480 million in February. The Gurugram-based firm also offers financing through its NBFC arm which it has been scaling up to offer financing programmes for both dealers and consumers.