Cars24 is India’s largest used car platform with over 90% market share.

Indian used car platform Cars24 has raised $450 million comprising a $340M Series F equity round and $110M of debt. The capital funding valued the startup, founded in 2015, at $1.84 billion, nearly twice from the end of last year. The equity round was led by SoftBank, DST Global, and Falcon Edge Capital and included participation by existing investors as well as Tencent holdings. (The Business Times)

This market could only go up

Vikram Chopra, Mehul Agrawal, Ruchit Agarwal, and Gajendra Jangid founded Cars24 in 2015 with an eye on a market where only two out of 100 Indians own a car. Potentially, according to Chopra, the used car market in the country could swell to as much as $100 billion or more in the coming decade.

Structurally, the Indian used car market is fragmented, unorganized, and fraught with pitfalls for both buyers and sellers. However, used cars typically cost 30-70% lower than new cars, and their market is 1.5 times bigger. A global chip shortage meanwhile has crimped the production and supply of new vehicles, leading to rising demand for used vehicles as India comes out of the pandemic.

Cars 24 aims to streamline the used car dealmaking process to make it easier and more reliable – on par with other e-commerce platforms that have taken off in India – including food deliveries, groceries, and fashion, as well as massive platforms such as Amazon and Flipkart.

Technology to revamp the used car market

The startup uses AI to value used vehicles and to match demand and supply in 130 Indian cities. It also refurbishes vehicles, has a chain of warehouses and a fleet of transport trucks.

“CARS24 is building a data-enabled tech platform that is organizing the fragmented used car market in India,” said Munish Varma, Managing Partner, SoftBank Investment Advisers. “We believe CARS24 is enhancing the customer experience in the used car industry with its sharp focus on technology.”

“CARS24 is at the forefront of transforming the way consumers buy and sell cars by providing a unique end-to-end digital shopping and transaction experience,” said Rahul Mehta, Managing Partner at DST Global. “They have emerged as the undisputed leader in the used car space in India and early traction in international markets is exceeding expectations.”

Cars24 will use the funding to continue to make new investments in technology and to expand into new markets across the globe.

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