COVID-19 pandemic has increased the demand for personal modes of transport, especially cars; many of whom prefer to buy used cars. As a result, CARS24 recently experienced massive surge in demand.
To capitalize on this opportunity and fuel its growth, CARS24 participated in a round of funding and has raised $400 million in its Series G round of funding, almost doubling its valuation to $3.3 billion from $1.8 billion in September.
The newest round of funding includes a $300-million equity funding and a $100-million debt provided by various financial institutions including the Commercial Bank of Dubai and IFM Investors in Australia. It is CARS24’s third funding round in less than a year.
The company raised $200 million last December leading to a total of $840 million raised in the previous year. The investors in the series G equity round were returning investors from Alpha Wave Global (Falcon Edge Capital) and other existing investors. Another $100-million cumulative debt funding has been raised across India, Australia and the UAE.
Vikram Chopra, CARS24’s co-founder and CEO, said that the amount raised would help the startup grow internationally and ramp up its operations in India. Furthermore, he pointed out that the company is making great strides in Australia, the Middle East, and Thailand.
CARS24 offers an exhaustive inventory of cars and bikes. Visit cars24.com and use filters and search for the vehicle of your choice. They offer financing and logistic solutions and deliver vehicles to the buyers and sellers. They also provide online vehicle assessments, analytic tools for measuring demand, and calibrating pricing. Currently, CARS24 has sold over 4,00,000 vehicles and has over 13 million monthly visitors.
What’s in Store for CARS24 in the Future?
To increase customer retention and to improve engagement with existing customers, CARS24 plans to invest in new services against rivals. These include increasing the number of financing options and establishing service centres. It is also planning to expand its international footprint with a launch in Southeast Asia soon. The company will continue attracting new customers and investing in infrastructure to provide better support for existing customers.
Finance is another area in which the company is enhancing its services. CARS24 has a banking license, making it the only player in its category that offers payment-processing options to its customers. It is another area of opportunity that is currently underserved, similar to car ownership.
In three months, CARS24 nearly doubled its valuation to $3.3 billion. The pre-owned car marketplace has several shortcomings; the more CARS24 scales, the more difficult it will be to ensure consistent customer service. But with these fundings, CARS24 is already navigating through challenges and investing heavily in technology and innovations to provide customers the service that they truly deserve.