[Funding Alert] Cars24 raises Rs 77.5 Cr from Singapore parent Global Car Group
Gurugram-based Cars24, online marketplace for buying and selling used cars, raised funding of Rs 77.58 crore from its Singapore parent Global Car Group, reveal filings with Ministry of Corporate Affairs (MCA).
The company has also filed a valuation report under which it says that the equity value of the company is Rs 3,809.08 crore (approximately $548 million). Last year, when Cars24 raised $50 million from Sequoia Capital and existing investors, its valuation was estimated at $250 million.
Founded by FabFurnish founders Vikram Chopra and Mehul Agrawal, Cars24 follows a customer-to-business (C2B) model. It buys cars from individuals and sells them to dealers. Unlike a classified platform, Cars24 enables end-to-end transactions and charges commission for each transaction.
Besides online, the company also has an offline presence with 133 branches across 27 cities in India, as per its latest valuation report.
In a statement shared, the company said that by the end of 2018, car owners will be able to sell their cars across 110 branches of Cars24 in 18 cities. Based on its growth trajectory, the company targets a run rate of 1,000 branches in 100 cities by 2020.
The company is also diversifying into financial business, as it had applied for an NBFC (non-banking finance company) licence to start lending from its own books.
Cars24 competes with companies like CarDekho, Droom, Quikr Auto, Olx and CarTrade.
Earlier this year, CarDekho had raised Series C funding of $110 million from Sequoia India, Hillhouse, CapitalG (Alphabet growth investment arm) and Axis Bank. These funds were used to enhance its focus on the used-car segment of the market and build a strong foundation in transaction services, including insurance and financing.
Also read: Market for used cars in India