Online pre-owned vehicles platform Cars24 has entered the unicorn club with a $200 million Series E funding round led by DST Global. The funding round has also seen participation from existing investors including Exor Seeds, Moore Strategic Ventures and Unbound. This fundraising values the startup at over $1 billion. The funding will be used to invest in technology and product innovation, and scale new business verticals.
The company said in a statement that with annual transactions exceeding 2,00,000 units and 4X increase in website engagement, it has already surpassed pre-COVID levels. Cars24 recently forayed into the used two-wheelers category and claims to have transacted over 3,000 two-wheelers.
â€śTraditionally, car selling or buying has been a tiresome process, however, over the last five years, we have strived to transform the customer's journey- 'the CARS24 way' that is hassle-free, safe and transparent. With this investment, we will continue to innovate our product and bolster our capabilities to provide the best experience for all parties - with sellers getting the best value for their car, and buyers getting to choose from a wide assortment of automobiles,â€ť Vikram Chopra, Co-founder and CEO, said in a statement.
Cars24 also acquired a Non-Banking Financial Company (NBFC) license last year for its financing business and is now providing quick and easy loan plans with 2-hour disbursals.
â€śCARS24 has pioneered a significantly differentiated experience for the customer and dealer by deeply leveraging data and technology at each step, resulting in world-class operational efficiency and market leadership in the segment,â€ť Rahul Mehta, the managing partner at DST Global said in a statement.
â€śWe are very excited to partner with Vikram, Mehul, Ruchit, Gajendra and the entire management team and look forward to working together as they continue to deliver tremendous value to the entire ecosystem through first principles thinking,â€ť he further added.