Cars24 to raise $250 million from DST, other investors; valuation nears $2 billion

Homegrown used-vehicle platform Cars24 Services Pvt Ltd is in active talks with Yuri Milner's DST Global and a clutch of other existing investors for another round of funding. If all goes well, Cars24's valuation could rise to $2 billion. The company is yet to come up with an official statement on the matter.

India's biggest online marketplace for pre-owned cars is aiming at raising $200-250 million, Bloomberg reported citing sources.

The Gurugram-based company is planning to close the funding round in a few weeks. There are hopes that Moore Capital Management could also join the investors led by DST.

Together, as the news publication reported, they could value Cars24 at $1.6-2 billion, a significant rise from its $1 billion valuation in last year's Series E funding round.

The company raised $200 million in a Series E round, in November last year, led by DST Global and existing investors including Exor Seeds, Moore Strategic Ventures and Unbound to become India's first used car Unicorn.

In October 2019, CARS24 had raised $100 million in their Series D round of funding from its existing investors - KCK, Agnelli (Fiat) Family, Sequoia India, Unbound, and Moore Strategic Ventures.

India's second-hand vehicle market is booming amid the pandemic. As the threat of infection rises, people are looking at ways to avoid public transport. Rather than buying new cars, many cost-conscious buyers are choosing second-hand vehicles.

Cars24 was founded in 2015 by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid with an aim to make the second-hand car sale process hassle-free.

It is backed by marquee investors like Sequoia India, Exor Seeds (venture arm of Exor, one of the world's leading holding companies controlled by the Agnelli Family), DST Global, Kingsway Capital (London based investment firm), Unbound (global investment firm headquartered in London), Moore Strategic Ventures and KCK (Silicon Valley & New York-based investment firm). 

Also read: Used car marketplace CARS24 enters unicorn club, raises $200 million in Series E round