E-commerce platform for pre-owned vehicles Cars24 has raked in $400 million in its Series G round led by Alpha Wave Global (formerly Falcon Edge Capital) along with participation from other existing investors. The round includes a cumulative debt funding of $100 million from investors across India, Australia, and the UAE.
According to Cars24, it has been valued at $3.3 billion in the new financing.
This is a significant jump in the company’s valuation in quick succession. In September, it had raised $450 million in equity and debt from SoftBank, Tencent, DST Global, Falcon Edge’s Alpha Wave Incubation, and others at a valuation of $1.8 billion.
The fresh proceeds will be utilized to fuel the brand’s global expansion in the Middle East, Australia, and Southeast Asia, and to further strengthen its foothold in the Indian market, said the company in a press statement.
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Besides buying cars on behalf of dealers, the six-year-old company has also expanded its operations into selling to retail customers and counts India, the Middle East, Australia, and the UK. It also deals in used bikes through Bikes24.
According to Cars24, it has reported a growth of 50% in the last quarter, clocking over 90% market share in the online used car segment. However, the operating revenue of its Singapore-based holding entity had declined by 12.6% to $371.3 million [Rs 2,720 crore] during the pandemic hit fiscal (FY21) from $424.7 million [Rs 3,110 crore] in FY20.
According to Source, the six-year-old firm managed to reduce its losses by 29% to $28.87 million [Rs 211 crore] during FY21. Cars24’s holding entity controls six subsidiaries of the company across India, Australia, UAE, and Thailand.
Meanwhile, Cars24 had pulled the plug on its supply-side business from 82 smaller cities early this month. The company will continue to focus on the top 100 cities countrywide.
In the used car retailing business, Cars 24 has become the most valued company followed by Spinny, CarDekho, and Droom. It’s worth mentioning that the latter three had entered the coveted club of unicorns this year only.