Indian pre-owned car marketplace CARS24 raised $450 million in a Series F funding round led by Softbank Vision Fund 2, DST Global, and Falcon Edge, giving the online platform an estimated valuation of $1.84 billion, almost double its previous value.
Tencent and existing investors Moore Strategic Ventures and Exor Seeds also participated in the round, according to a press release. The funding was comprised of a $340 million Series F equity round coupled with $110 million debt from several banks.
The largest used vehicle marketplace in India, CARS24 has 90% of the market share. The startup plans to use the fresh infusion of capital to continue its expansion into the United Arab Emirates and launch in Australia.
The funding will also help the company build out its cars, bikes and financing divisions, and invest in technology. More than 1,000 cars in the UAE have been sold since CARS24 launched there in April.
Vikram Chopra, CARS24 co-founder and CEO, said this funding was its largest round since the company started operating in 2015, and the money will help the startup continue expansion efforts and enable more Indians to become car owners.
“Traditionally, car selling or buying has been a tiresome process, and only 2 of 100 people own cars in India,” Chopra said, adding that the “the CARS24 way” is safe, easy and transparent.
While semiconductor shortages hinder the production of new cars, the used vehicle market is continuing to experience high demand. India is the fifth-largest market for new automobiles, according to the India Brand Equity Foundation.
Related news: Threat of Chip Shortages Remains Real
Rahul Mehta, managing partner at DST Global, said that CARS24 is the pioneering the evolution of the car market with its “unique end-to-end digital shopping and transaction experience” that is changing how people buy and sell cars.
Mehta added that CARS24 is now the “undisputed leader in the used car space in India” and its initial reception by international markets is “exceeding expectations.”