CARS24 is a renowned e-commerce network for pre-owned vehicles, such as automobiles and motorcycles, that aims to make purchasing and selling vehicles more convenient online.
Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal created Cars24 in 2015 as a website for buying and selling second-hand vehicles. In 2021, the firm expanded its worldwide operations to include the United Arab Emirates and Australia, among other nations.
The transaction is facilitated through the Cars24 portal, which also has a physical presence. Apart from selling used automobiles, the company’s services include documentation such as transferring the vehicle to the new owner’s name, allowing for end-to-end transactions, as well as an online auction platform for businesses wishing to sell their pre-owned vehicles.
In 2019, the firm began providing certified used automobiles, with a buyback guarantee on vehicles that have undergone examination. As of 2019, the firm has 202 locations in India, spread over 73 cities. Aside from its own locations, the organisation maintains a network of over 10,000 channel partners spread throughout 230 Indian cities. Cars24 Moto will be introduced in May 2020. Cars24 Moto is a platform that allows users to sell used two-wheelers including motorcycles, mopeds, and scooters. It has established a service that allows clients to get their vehicles inspected at their location rather than at a branch.
“Cars24 has pioneered a significantly differentiated experience for the customer and dealer by deeply leveraging data and technology at each step, resulting in world-class operational efficiency and market leadership in the segment,”- DST Global managing partner Rahul Mehta
How did Cars24 evolve?
The creators of CARS24 realised that the used automobile sector had been disorganized for a long time before coming up with the idea of CARS24. They found a significant gap between supply and demand in this market. There was no standard protocol for selling or acquiring a used automobile, and the industry lacked the technology to calculate an appropriate price for the vehicle.
Another impediment was the time-consuming process of gaining access for possible buyers, as well as the jumbled market actors that do not allow for a thorough evaluation of the vehicle. Both buyers and sellers must devote a significant amount of time and effort in order to reach a satisfactory agreement. After seeing these inconsistencies, the company’s founders decided to employ technology to address them and make the process of buying and selling used automobiles easier for its consumers. The founders were optimistic about the potential with the used car industry and felt that their concept would arouse a revolution.
“People who did not own a car are looking to own a car due to safety issues, while many others want to upgrade from two-wheelers.” There is a surge in traffic on the website, and monthly transactions have surpassed pre-covid levels,” – Vikram Chopra, Cars24’s co-founder and chief executive.
So far, CARS24 has raised around $1.1 billion. On November 24, 2020, the firm became a unicorn after raising $200 million in a Series A investment. DST Global was the lead investor, with CARS24 valued at $1 billion post-money. CARS24 was the first firm in the used automobile industry to earn unicorn status. CARS24 just secured $450 million in an equity and loan round sponsored by Softbank, Tencent, DST Global, and others, which closed on September 20, 2021.
With the latest funding round, the company’s valuation is close to $2 billion, up from $1.72 billion to $1.75 billion after the company’s last Series F round on September 10, 2021, which was led by eight investors including DST Asia, Alpha Wave, Moore Strategic Partners, Tencent Holdings, and others, and raised $258.6 million. Cars24 is also trying to fund up to $350 million in its next round, which is expected to include SoftBank at a valuation of over $2 billion.
Cars24’s Upcoming Plans
Cars24’s continued success is based on the fact that the firm has over 10,000 channel partners registered on its platform, with plans to grow that number to over 20,000 in the next two years. According to the firm, it has been actively beginning operations in a number of Tier 2 and Tier 3 cities. Cars24 claims to do around 13,500 transactions every month, with an average order value of INR 3.5 lakh. Cars24 promises to transact 1.5 lakh automobiles per year, with a goal of 1 million yearly transactions by the end of the year.