of India Cars24 Services Pvt. Yuri is in talks with Milner’s DST Global and other investors for a funding round that could raise the value of the used vehicle site to $2 billion, a person familiar with the discussion said.
India’s largest online marketplace for pre-owned cars is set to raise $200 million to $250 million from existing backers, including DST, which could lead the round, said the person who spoke to discuss a private deal. was asked to including other investors Moore Capital Management may be involved in the deal, which could close in a few weeks, the person said. The deal could value Cars24 from $1.6 billion to $2 billion, which is roughly $1 billion. is above In November, when it closed the Series E round, the person said.
Used-vehicle sales in India are booming as consumers move away from mass transit systems to avoid catching COVID-19. While the pandemic has halted new auto sales, there is a demand for pre-owned cars as cost-conscious buyers seek value for money.
cars24 more Representatives for DST Global declined to comment. Representatives for Moore did not respond to an email seeking comment.
The startup, based in Gurgaon on the outskirts of New Delhi, was founded in 2015 by Vikram Chopra, Mehul Agarwal, Ruchit Agarwal and Gajendra Jangid to facilitate the used vehicle business. Car buying and selling in India has long been a worry-ridden, bumpy process, dominated by street corner mom-and-pop sales yards, asking consumers about pricing and vehicle condition. There is distrust.
Cars24 aims to make purchasing a pre-owned vehicle as easy as buying a refrigerator or smartphone online. It prices vehicles based on AI algorithms and uses the data to determine which car will give the new owner the least hassle. The vehicles are refurbished at the company’s reconditioning facilities before being listed on its platform. Cars24 has a seven-day no-questions-asked return policy and comes with a six-month warranty. It also sells pre-owned motorcycles and scooters and provides financing.
Used Car Startup Pass in India $1 billion Price with DST Deal
The startup said earlier this month it expanded to Australia and the United Arab Emirates and plans to enter other markets in the Middle East and Southeast Asia this year. In November, Cars24 said its website traffic had increased fourfold since the start of the pandemic. Its current investors include Sequoia Capital India, xor seed, Kingsway Capital Partners and others.
— with the assistance of Alexander Sazonov