Cars24, an online transaction platform for pre-owned vehicles, has announced a $200 million Series E funding round led by DST Global with participation from existing investors, including Exor Seeds, Moore Strategic Ventures and Unbound at a valuation of over $1 billion.
This funding will be used to invest aggressively in technology and product innovation and scale new business verticals. With annual transactions exceeding 200,000 units and 4X increase in website engagement, the company has already surpassed pre-Covid levels.
Cars24 has a strong foundation in technology, which has made the customer experience efficient, reliable, and trustworthy. The company has reshaped the industry with its superior tech capabilities that includes unique vehicle appraisal technology, AI-enabled pricing algorithms that give the accurate market price of a vehicle, and a scaled infrastructure that ensures seamless execution.
“Traditionally, 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,” Vikram Chopra, Co-founder and CEO, said in a statement.
“Cars24 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. We 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,” said Rahul Mehta, Managing Partner at DST Global.
Cars24 recently forayed into the used two-wheelers category and in less than six months of operations, the company has already transacted over 3,000 two-wheelers. Cars24 also acquired an NBFC licence last year for its financing business and is now providing quick and easy loan plans with two-hour disbursals.
DST Global is a leading internet investment firms globally. It has offices in Silicon Valley, New York, London, Beijing and Hong Kong.