[Funding] Cars24 enters the unicorn club with $200 million funding led by DST Global

Cars24 has now become a Unicorn startup. The company in a blog states that they have raised over $200 million Series E funding round led by DST Global. The round saw participation from existing investors; including Exor Seeds, Moore Strategic Ventures and Unbound at a valuation of over $1 billion. They will use this fund to invest aggressively in technology and product innovation. Further, the company aims to scale new business verticals. With annual transactions exceeding 2,00,000 units and a 4x increase in website engagement, the company has also already surpassed pre-COVID levels.

About Cars24

Cars24 is one of India’s leading online transaction platform for pre-owned vehicles. Headquartered in Gurgaon, Cars24 has reshaped the industry with its tech capabilities. These include unique vehicle appraisal technology, AI-enabled pricing algorithms that give the accurate market price of a vehicle, and a scaled infrastructure that ensures seamless execution. Talking about Cars24, Vikram Chopra, Co-founder and CEO, states, “Traditionally, car selling or buying has been a tiresome process. However, over the last five years, we have strived to transform the customer’s journey; ‘the Cars24 way’ that is hassle-free, safe and transparent. With this investment, we will continue to innovate our product and bolster our capabilities to provide the best experience for all parties – with sellers getting the best value for their car. Buyers getting to choose from a wide assortment of automobiles.”

About the funding

Talking about the fund, Managing Partner at DST Global adds,

“Cars24 has pioneered a significantly differentiated experience for the customer and dealer. We leverage data and technology at each step. This results in world-class operational efficiency and market leadership in the segment. We are very excited to partner with Vikram, Mehul, Ruchit, Gajendra and the entire management team. We also look forward to working together as they continue to deliver tremendous value to the entire ecosystem through first principles of thinking.”

Cars24 recently forayed into the used two-wheelers category in 2015. And, in less than 6 months of operations, the company has already transacted over 3,000 two-wheelers. Cars24 also acquired an NBFC license last year for its financing business and is now providing quick and easy loan plans with 2-hour disbursals. Cars24 will join the likes of Razorpay, Unacademy, Zerodha, Postman, Nykaa, FirstCry and Pine Labs which became unicorn from India in 2020. It also has become the first firm from the used car space to be valued over $1 billion.