When Spinny raised $283 million earlier this month, its valuation had more than doubled to $1.8 billion in just 6 months. Similarly, Cars24’s valuation jumped 60% in just 3 months to $3.3 billion in December. CarDekho raised $250 million in October, including $200 million in Series-E equity and $50 million in debt in its pre-IPO round, while Droom closed the first leg of its current pre-IPO growth funding round of up to $200 million. done.
According to a recent study by OLX Auto-Crisil, the sales of used cars in the country will double to 7 million units in almost 4 years from just 4 million units in FY2011. As per estimates, the segment should shrink by just 4.4 million units at the end of FY22. “The used car market will hit 10 million vehicles by FY30 at 14% CAGR – how many segments can promise that kind of growth?” Noting that only 6-8% of this is currently digital, “the majority of the money will go into digitizing a large part of the ecosystem,” OLX said. auto CEO Amit Kumar,
Unicorn startups are already adding manpower and markets as they scale up the tech infrastructure. Spinny Founder and CEO Niraj Singh We are present in 13 cities and will expand to 25 cities in two quarters and we have grown from 40-strong headcount in our tech and product team to 200. We are investing in scale-up. “We are expanding our presence in Australia, Thailand and the Middle East and will use these funds for international expansion,” said Cars24 founder and CEO. Vikram Chopra,
The flood of funding and the aggression of unicorns means that even market leaders are stepping on the gas. Mahindra First Choice Wheels, which has a 50% share in the organized used car market. its CEO Ashutosh Pandey “We are planning to raise funds to expand our footprint in the retail sector,” it said. Auto experts say the optimism for investing in used cars is high looking to the future. “Investing in used cars is like FOMO – people think they will be missed out on the next bull run,” Pandey said. “What happened with mobile phones in the last 10 years will happen in older cars as well.
The pandemic and chip shortages are the tail wind for new cars, but long waiting lists have prompted consumers to turn to older cars. It is a growing category globally, where the new ratio is 3:1, while in India it is 1.5:1 and growing rapidly,” said Vikram Chopra of Cars24.
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