CARS24, is a startup involved in the business of buying and selling used cars. It has become quite a visible company through its advertisement blitz involving a host of celebrities. The startup has now announced that it has raised $100 million as part of its Series D funding. Investors participating in this round include KCK, Agnelli (Fiat) Family and Sequoia India. Besides these, London-based investment firm Unbound, and Moore Strategic Ventures, LLC (“MSV”), a New York based investor too had their share of investments in CARS24.
In an earlier announcement, the company had claimed that Indian cricketer Mahendra Singh Dhoni, who is a brand ambassador of the company, has made investment in the company as well. CARS24 is arguably one of the fastest growing companies in the used car business and has been expanding its footprint across the country. By the end of this calendar year, the company wants to be present in 75 cities. In terms of numbers, the company is facilitating the sale of 1.5 lakh cars per year currently through its 168 branches in 48+ cities and wants to increase it to 1 million in a couple of years’ time. CARS24 has developed a franchise model and would want future growth to come through this organic route.
CARS24 believes it has been a disruptive force in the business of buying used /pre-owned cars and claims it is the largest in the country. Its USP is one can drive his or her car into any of their outlets and conclude the sale of their vehicle within one hour. What’s more, they help with the transfer of ownership of the vehicle too, though the transport department. This was one area of irritation for most car owners trying to sell their cars through car dealers. They were left to fend for themselves in trying to get the paperwork done at the RTO (Regional Transport Office). CARS24 assures hassle-free transfer of ownership or change of name in the Registration Certificate (RC). Of course, they promise the best price for your car in town.
Consumer lending is a new vertical the startup is getting into and the funds now raised will be used in expanding that business, apart from the natural geographical expansion planned. Where technology is employed, funds will be invested in upgrading it.