DST leads $200m Series E for India's Cars24
Russia’s DST Global has led a $200 million Series E round for Indian used car platform operator Cars24 at a valuation of more than $1 billion.
US-based Exor and Moore Strategic Ventures and UK-based Unbound also participated. DST, Moore, and Unbound provided an approximately $100 million round last year alongside Sequoia Capital India, Partners Group, and Canada’s KCK Global. It extends a surge in late-stage funding in the local VC ecosystem that has fuelled rapid expansion in start-ups claiming unicorn status.
Cars24’s core service is buying and reselling used cars of any make and in any condition with an emphasis on ensuring speed and value through an online vehicle appraisal calculator and artificial intelligence pricing algorithms.
Recent activity includes an expansion into the two-wheelers category, which has resulted in 3,000 transactions in less than six months. Last year, the company received a non-bank finance company license for its loans business.
The company claims to have seen a fourfold increase in website engagement during lockdown when transportation services were suspended, surpassing pre-pandemic traffic levels and bringing annual transactions to more than 200,000 units.
“Traditionally, car selling or buying has been a tiresome process. However, over the last five years, we have strived to transform the customer’s journey the Cars24 way that is hassle-free, safe and transparent,” Vikram Chopra, co-founder and CEO of Cars24 (pictured), said in a statement.
“With this investment, we will continue to innovate our product and bolster our capabilities to provide the best experience for all parties – with sellers getting the best value for their car [and] buyers getting to choose from a wide assortment of automobiles.”
Cars24 has raised about $430 million in the past two years. Other investors include Kingsway Capital Management, 500 Startups, Asia Venture Group, GE32 Capital, Regent Street Partners, Vendebita Trading, VH Capital, and Apoletto, a vehicle associated with DST founder Yuri Milner.
Recent investment activity in India’s used car segment also includes a $43.7 million Series B round for Spinny, a similar platform that focuses on the premium end of the market and acquired rival operator Truebil in August. CarTrade, CarDekho, Droom, Mahindra First Choice Wheels, and OLX are among the other PE-backed players in this space.
DST gained exposure to India’s automotive and transportation market more broadly in 2015 when it contributed $206 million to a $315 million round for taxi-booking platform Ola. Milner has made a number of investments in auto and transportation companies around the region via funds including Apoletto.
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