Gurugram-based Cars24, an online marketplace for used cars has raised ₹340 crores ($49.7 million) from Sequoia Capital India. Other existing investors that participated in the funding round included Cayman Islands-based Kingsway FCI Fund, along with Toronto-based KCK Global. Cars24 is valued at ₹1,713 crores ($250 million) in this funding round.
It is important to note that Sequoia Capital is an investor in CarDekho, a competitor of Cars24 in the online marketplace for cars.
Cars24 was founded by Vikram Chopra and Mehul Agrawal, Co-founders of FabFurbish in 2015. Cars24 aims to provide a reliable way for car owners to sell their cars at the best price through its platform.
Selling a car is a long and painful process, which involves the listing of cars on various websites, talking to a number of potential buyers over the phone or face to face meetings, delayed payments, along with not being able to get a fair price for the car.
Cars24 claims to provide an efficient way for the sellers to list their cars, providing help along the process, making it simpler and smoother. It also provides a simple price valuation tool that can be used to get a fair valuation of the car. It also helps with the payment and transfer of required documents once the car is sold.
It has over 50 branches covering 12 major cities across the country, backed by a team of over 700 employees. Cars24 has sold nearly 100,000 cars since inception and makes around 3,500-4,000 transaction in a month. It also charges a commission of 4-5% for providing all the services.
The company clocked nearly ₹417 crores in gross sales in FY17, making a loss of 76.3 crores, as per the company filings with the RoC.
The used car market remains widely untapped in India and there are many startups trying to establish themselves in this space. Along with Cars24, other players competing in this space include CarDekho, CarTrade, CarWale, among others.