New Delhi: Cars24, an online marketplace for pre-owned cars, is set to close in a $350 million funding round that will value the company at approximately $1.8 billion.
Gurgaon-headquartered startup has major investors keen to pump cash softbank, DST Global and Carlyle said people are familiar with the development. The company was valued at around $1.5 billion during the funding talks.
Founded in 2015 by Vikram Chopra, Mehul Agarwal, Ruchit Agarwal and Gajendra Jangid, Cars24 entered the unicorn club (valued at over $1 billion) in November last year, when it raised $200 million led by investment firm DST Global. Led by Russian-born billionaire Yuri Milner. DST Global has previously invested in Indian startups like Udaan, Ola and Swiggy. Chopra, CEO of Cars24 and a former Sequoia executive, could not be reached for comment.
Rival Droom, led by Sandeep Aggarwal, is set to shut the startup a few weeks after raking in $200 million in pre-IPO funding, valued at $1.2 billion. 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.
Growing 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 relying on the belief that this will lead to a boom in second hand car sales as consumers will shift their focus online while selling or buying used cars.
Gurgaon-headquartered startup has major investors keen to pump cash softbank, DST Global and Carlyle said people are familiar with the development. The company was valued at around $1.5 billion during the funding talks.
Founded in 2015 by Vikram Chopra, Mehul Agarwal, Ruchit Agarwal and Gajendra Jangid, Cars24 entered the unicorn club (valued at over $1 billion) in November last year, when it raised $200 million led by investment firm DST Global. Led by Russian-born billionaire Yuri Milner. DST Global has previously invested in Indian startups like Udaan, Ola and Swiggy. Chopra, CEO of Cars24 and a former Sequoia executive, could not be reached for comment.
Rival Droom, led by Sandeep Aggarwal, is set to shut the startup a few weeks after raking in $200 million in pre-IPO funding, valued at $1.2 billion. 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.
Growing 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 relying on the belief that this will lead to a boom in second hand car sales as consumers will shift their focus online while selling or buying used cars.
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