CARS24 raises $400 million; valuation rises by 2x to $3.3 billion

Pre-owned cars commerce platform CARS24 has announced a fresh capital raise of $400 million, which includes a Series G funding of $300 million along with $100 million debt from various financial institutions. This round is CARS24’s third in just over a year and values the used cars e-commerce player at $3.3 billion, about double the valuation from its previous round in September 2021, the company said.

 
The Series G equity round was led by return investor Alpha Wave Global (formerly known as Falcon Edge Capital) along with participation from other existing investors. CARS24 also raised a cumulative debt-funding of $100M across India, Australia, and the UAE.
 
The investment will be utilised 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. In addition, CARS24 will continue to enhance its superior technology and build a gold standard for quality used cars globally. In this pursuit, CARS24 recently announced the launch of seven Mega Refurbishment Labs (MRLs) in India -- an industry first, and one MRL in the UAE, which is amongst Dubai’s largest ever commercial leasing deals, as per a company handout.
 
The pre-owned vehicle market, as per CARS24, is estimated to touch $100 billion globally with accelerated adoption across Australia, UAE, Thailand. The COVID-19 induced push has further pushed the industry with virus transmission fears casting an impact on shared mobility services.

“Today’s news is just another step in CARS24’s journey. We’re in it for the long haul, and we look forward to continuing our work of creating a frictionless consumer experience for used car customers. CARS24 has aggressive plans for 2022 and beyond, and we can’t wait to put this investment to work. Today, we are witnessing greater acceptance amongst customers across the globe for our platform when purchasing their next car. As we continue to build the best infrastructure for the future with an end-to-end digital customer experience, we are confident that this will delight our customers with our high-touch industry experience,” Vikram Chopra, Co-founder & CEO, CARS24 said.
 
 Founded in 2015, CARS24 claims to transform the way consumers buy, sell and finance used cars by leveraging technology at every leg of the consumer journey to solve genuine pain points and deliver a seamless buying experience.
 
“We are excited to back CARS24 yet again as they continue to cement their leadership positions across India, UAE, Australia and other international markets. CARS24's robust competitive moats across in-house reconditioning, access to the widest assortment/supply and deep data science drive a delightful customer experience, and reflects in its best-in-class NPS. We believe this investment will help CARS24 fortify its moats even further and scale 10x from here over the next few years. We remain impressed by the team's vision and execution, and are delighted to deepen our partnership with CARS24,” Navroz D. Udwadia, Co-founder and Partner of Alpha Wave said.