Cars24 is an online auto marketplace that raised $29.8 million in its new funding round from its Singapore-based parent company Global Car Group Limited. The startup has not disclosed how it intends to use these fresh funds but it might use it to scale its operations and expand in the global marketplace. The startup is working on introducing new services.
The board has approved a resolution to allot 2.18 lakh equity shares at an issue price of Rs 10 each with a premium of Rs 11,489 per share to raise $29.8 million. The source close to the deal mentioned that the startup might use these fresh proceeds for meeting working capital purposes and enhancing its application. This startup operates a marketplace that enables car owners to sell and buyers to buy second-hand cars. The platform provides customers with several pre-owned cars at lower prices through its online platform and offline outlets. The startup secured $200 million in its funding round led by DST Global and turned unicorn in 2020. The company has secured over 1 billion USD across multiple rounds since its inception.
This Delhi-NCR startup secured $329 million in its series G funding round and had a valuation of $3.21 billion in 2022. Cars 24 is one of the 12 Indian unicorns that signed letters of intent to join the Open Network for Digital Commerce platform launched by the Indian government in May. The car marketplace recently introduced a new service to hire on-demand drivers on an hourly basis pay. The company aims to change the purchase and sale of pre-owned cars in India. The startup also provides its services in the UAE and Australia.
The company reported a 16 percent in its revenue to 930.3 million USD for FY23. The data intelligence platform, Traxcn mentioned that the startup faced a 32 percent decrease in its net losses to 168.4 million USD in the same duration. Cars24 provides an online platform to sell pre-owned cars at affordable prices. The development came just after the car marketplace saw increased interest from investors. The startup has investors including Alpha Wave Global, Softbank, and Commercial Bank of Dubai. Cars24 faces competition from other online auto marketplaces such as CarsDekho, CarTrade, and Spinny. This investment shows the trust of investors in Car24’s market potential and business model.
Conclusion:
Cars24 is a Delhi NCR-based startup offering a car marketplace platform for selling pre-owned cars. The startup got fresh capital of $29.8 million from its parent company Global Car Group Limited. The company did not disclose any plans to use this amount. The board of the company issued 2.18 lakh equity shares at a face value of Rs 10 with a premium of Rs 11,489 per share to raise Rs 250 crore. The startup uses various technologies to offer its customers with a seamless experience and secure transactions. The startup competes with other car companies in the same segment such as CarsDekho, and Spinny.
