One of the world’s leading eCommerce platforms for pre-owned cars, CARS24 has concluded a $400 million round of funding that valued the Indian startup at $3.3 billion, nearly double its valuation in September 2021.
The financing round, which is the eCommerce platform’s third in a year, included a $300 million Series G equity round led by US-based alternative asset manager, Alpha Wave Global, along with other existing investors and $100 million debt component which has been sourced from investors across the UAE, India, and Australia.
According to the company, the new investment will be utilized to step up CAR24’s global expansion in the Middle East, Australia and Southeast Asia, and to further strengthen its presence in the Indian market.
CARS24 will also continue to improve its technology and build a gold standard for the quality of used cars globally. In line with this, the company recently announced the launch of seven Mega Refurbishment Labs (MRLs) in India and one MRL in the UAE, which is amongst Dubai’s largest ever commercial leasing deals.
“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 aims to change the consumers’ perceptions towards buying, selling and financing used cars, by relying on technology at every stage of the customer’s journey.
Even amid rapid growth, CARS24’s global opportunity remains strong. The accelerated adoption of CARS24 across the UAE, Australia and Thailand has illustrated the importance of a used car eCommerce platform experience. The company has already sold close to 3000 cars in the UAE market since commencing its operations.
Commenting on the new round, Mr. Navroz D. Udwadia, Co-founder and Partner of Alpha Wave stated, “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 reflect 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.”