CARS24 raises $300 million Series G round led by Alpha Wave
- Abu Dhabi's Alpha Wave has led a $300 million Series G round for India's used cars marketplace CARS24. The round also saw participation from the startup's existing investors.
- CARS24 also raised another $100 million in debt from diversified financial institutions. The latest cash injection brings the startup's overall valuation to $3.3 billion.
- In May 2021, the company started operating in the UAE. Since then, it managed to sell over 3000 cars. It was originally founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal.
- CARS24 plans to use the funds to fuel its expansion in the Middle East, Australia and Southeast Asia, and to deepen its presence in its home market.
CARS24, India's leading e-commerce platform for pre-owned vehicles, today announced the closing of a $400 million round of funding including a $300 million Series G equity round alongside $100 million debt from diversified 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 has already sold close to 3000 cars in the UAE market since commencing its operations in May this year.
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 $100 million across the UAE, India, and Australia.
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.
Even amid rapid growth, CARS24’s global opportunity remains massive. The accelerated adoption of CARS24 across the UAE, Australia and Thailand has illustrated the significance of a used car e-commerce platform experience and is a powerful indication of its future impact on the $100 billion industry.
Speaking on the development, Abhinav Gupta, CEO, CARS24 - Gulf Region said, “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.”
Founded in 2015, CARS24 exists 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.
Navroz D. Udwadia, Co-founder and Partner of Alpha Wave | Falcon Edge Capital said, “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."
The rise of online retail around the world remains strong and continues to see increased support from consumers forecasting record-breaking growth for online shopping of used cars. By enabling a seamless experience and solving genuine used car customers' pain points, CARS24 is transforming the way consumers buy cars.