Sequoia India-backed used car marketplace Cars24 raises $100m

India-based used car marketplace Cars24 has secured US$100 million in its series D round of funding, which included investments from new backers Unbound, a global investment firm headquartered in London, and New York-based investment firm Moore Strategic Ventures.

Existing investors KCK, Agnelli (Fiat) Family, and Sequoia India also participated in the round.

Photo credit: Pxhere

Cars24 plans to use the new funds to expand its footprint to more cities in the country, build up a franchise model, and boost its recently announced consumer lending business.

The company has been “investing heavily” in making its technology more robust, convenient, and frictionless, Cars24 co-founder and CEO Vikram Chopra said.

Cars24 aims to simplify the used car-selling process for its users. It takes complete responsibility for all the paperwork, including transfer of certificate of registration, and enables end-to-end transactions. It sells pre-owned cars to businesses across India via its auction platform.

The company claims to have more than 10,000 channel partners on its platform, a number it looks to double in the next two years. It is also targeting to reach 1 million annual transactions by the end of 2021, up from its current yearly number of 150,000.

In a recent Mordor Intelligence report, the Indian used car market was pegged at around US$21 million in 2018 and is expected to register a compound annual growth rate of 15.12% between 2019 and 2024. Cars24 is currently a key player in the market, alongside Mahindra First Choice and OLX India.

Earlier this year, the used-car marketplace announced a strategic partnership with international cricketer Mahendra Singh Dhoni. In exchange for equity in the company, the athlete invested an undisclosed sum in Cars24 as part of the company’s series D round.