Cars24 set to raise $350 million at nearly $1.8 billion valuation – Times of India
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NEW DELHI: Cars24, an online marketplace for pre-owned cars, is set to close in on a $350-million funding round that would value the company at around $1.8 billion.
Major investors looking to pump cash into the Gurgaon-headquartered startup are SoftBank, DST Global and Carlyle, said people familiar with the development. The company’s valuation was pegged at around $1.5 billion during the funding talks.
Cars24, founded by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid in 2015, entered the unicorn club (valued at over $1 billion) in November last year, when it raised $200 million in a round led by DST Global, an investment company led by Russian-origin billionaire Yuri Milner. DST Global has earlier invested in Indian startups such as Udaan, Ola and Swiggy. Chopra, CEO at Cars24 and a former Sequoia executive, could not be reached for comment.
The startup is set to close the round a few weeks after rival Droom, led by Sandeep Aggarwal, raked in $200 million in a pre-IPO funding that valued the company at $1.2 billion. Along with Droom, Cars24 competes with companies such as CarDekho, Spinny and CarTrade as well as more traditional channels in the pre-owned car space such as Mahindra First Choice and OLX.
Increasing investor interest in the space comes on the back of Covid-19 as third-party ride-hailing services have taken a backseat. These new age online platforms are banking on the assumption that this will accelerate the sale of second-hand cars as consumers will turn their attention online while selling or buying used cars.
Major investors looking to pump cash into the Gurgaon-headquartered startup are SoftBank, DST Global and Carlyle, said people familiar with the development. The company’s valuation was pegged at around $1.5 billion during the funding talks.
Cars24, founded by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal and Gajendra Jangid in 2015, entered the unicorn club (valued at over $1 billion) in November last year, when it raised $200 million in a round led by DST Global, an investment company led by Russian-origin billionaire Yuri Milner. DST Global has earlier invested in Indian startups such as Udaan, Ola and Swiggy. Chopra, CEO at Cars24 and a former Sequoia executive, could not be reached for comment.
The startup is set to close the round a few weeks after rival Droom, led by Sandeep Aggarwal, raked in $200 million in a pre-IPO funding that valued the company at $1.2 billion. Along with Droom, Cars24 competes with companies such as CarDekho, Spinny and CarTrade as well as more traditional channels in the pre-owned car space such as Mahindra First Choice and OLX.
Increasing investor interest in the space comes on the back of Covid-19 as third-party ride-hailing services have taken a backseat. These new age online platforms are banking on the assumption that this will accelerate the sale of second-hand cars as consumers will turn their attention online while selling or buying used cars.
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