The homegrown platform for automobiles, Cars24 Services Pvt, is inching closer to a deal to raise $350 million from DST Global, Falcon Edge Capital, SoftBank Group Corp and a clutch of other investors.
The overall funding could value Gurugram-based Cars24 at $2 billion, Bloomberg reported citing people familiar with the matter. The funding round could be closed in the next couple of weeks. The funding plans also syncs well with Cars24's mega IPO plan in the next 18-24 months.
The company had raised $200 million in a Series E round, in November last year, led by DST Global and existing investors including Exor Seeds, Moore Strategic Ventures and Unbound to become India's first used car Unicorn.
In October 2019, CARS24 had raised $100 million in their Series D round of funding from its existing investors - KCK, Agnelli (Fiat) Family, Sequoia India, Unbound, and Moore Strategic Ventures.
India's second-hand vehicle market is booming amid the pandemic. As the threat of infection rises, people are looking at ways to avoid public transport. Rather than buying new cars, many cost-conscious buyers are choosing second-hand vehicles.
Cars24 was founded in 2015 by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid. The online marketplace is backed by marquee investors like Sequoia India, Exor Seeds (venture arm of Exor, one of the world's leading holding companies controlled by the Agnelli Family), DST Global, Kingsway Capital (London-based investment firm), Unbound (global investment firm headquartered in London), Moore Strategic Ventures and KCK (Silicon Valley & New York-based investment firm).
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