Cars24 has successfully raised significant capital through multiple funding rounds, attracting a diverse group of investors. The platform specializes in buying and selling used cars, offering car loans, and exploring new car options.
Continue reading to delve into the details of Cars24's fundraising journey and the key investors supporting this dynamic platform.
What Is Cars24?
Cars24, founded in 2015 in Gurugram, India, is a leading platform for buying and selling used cars. The company was established by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal.
With a focus on simplifying the car buying and selling process, Cars24 also offers car loans, new car purchases, and various car-related services. The platform has grown significantly, employing over 5,000 people globally.
For more information, visit their official website or their profile on wellfound.com.
How Much Funding Has Cars24 Raised?
- Series A
- Amount Raised: $5 million
- Date: October 2015
- Lead Investors: Sequoia Capital
- Motivation Behind the Round: To expand operations and enhance the technology platform.
- Series B
- Amount Raised: $16 million
- Date: February 2017
- Lead Investors: Sequoia Capital, Exor Seeds
- Motivation Behind the Round: To scale the business and enter new markets.
- Series C
- Amount Raised: $50 million
- Date: September 2018
- Lead Investors: Sequoia Capital, Partners Group
- Motivation Behind the Round: To improve customer experience and expand the dealer network.
- Series D
- Amount Raised: $100 million
- Date: October 2019
- Lead Investors: Unbound, KCK Global
- Motivation Behind the Round: To enhance technology and increase market penetration.
- Series E
- Amount Raised: $200 million
- Date: November 2020
- Lead Investors: DST Global, Exor Seeds
- Valuation at Round: $1 billion
- Motivation Behind the Round: To expand internationally and develop new services.
- Series F
- Amount Raised: $450 million
- Date: September 2021
- Lead Investors: SoftBank Vision Fund 2, Alpha Wave Global
- Valuation at Round: $1.84 billion
- Motivation Behind the Round: To accelerate growth and invest in technology.
- Series G
- Amount Raised: $300 million
- Date: December 2021
- Lead Investors: DST Global, Falcon Edge Capital
- Valuation at Round: $3.3 billion
- Motivation Behind the Round: To strengthen market position and enhance customer experience.
Total Amount Raised: $1.121 billion. Current Valuation: $3.3 billion.
Key Investors
- Sequoia Capital
- Details: Sequoia Capital is a prominent venture capital firm based in Menlo Park, California. It has a long history of investing in early-stage and growth-stage companies.
- Investment Focus Areas: Technology, healthcare, consumer services.
- Notable Investments: Apple, Google, WhatsApp.
- SoftBank Vision Fund 2
- Details: SoftBank Vision Fund 2 is a part of the SoftBank Group, a Japanese multinational conglomerate. The fund focuses on investing in technology-driven companies.
- Investment Focus Areas: Artificial intelligence, robotics, telecommunications.
- Notable Investments: Uber, WeWork, ByteDance.
- DST Global
- Details: DST Global is a global investment firm founded by Yuri Milner. It specializes in late-stage internet companies.
- Investment Focus Areas: Internet, technology, social media.
- Notable Investments: Facebook, Twitter, Alibaba.
- Alpha Wave Global
- Details: Alpha Wave Global, formerly known as Falcon Edge Capital, is a global alternative asset manager. It focuses on long-term investments in high-growth companies.
- Investment Focus Areas: Technology, healthcare, financial services.
- Notable Investments: Ola, PolicyBazaar, Delivery Hero.
- Exor Seeds
- Details: Exor Seeds is the venture capital arm of Exor, one of Europe’s leading diversified holding companies. It invests in early-stage companies across various sectors.
- Investment Focus Areas: Technology, healthcare, consumer goods.
- Notable Investments: Via, Casavo, Wellthy.
What's Next for Cars24?
Cars24 is poised to capitalize on several promising opportunities. The expansion of Loans24 into financial services and leveraging AI for car valuation are key growth areas. With the pre-owned car market in India growing at 25% year-on-year, the potential for market share increase is substantial.
Future fundraising rounds are likely, given the company's growth trajectory and recent corporate round. These funds could support further technological advancements and international expansion. However, Cars24 may face challenges such as competition from other platforms and regulatory changes. Maintaining quality in car inspections and certifications will also be crucial.
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