What Is Cars24?
Cars24 is basically an online marketplace for the buying and selling of used cars. Founded in 2015 by Vikram Chopra, Mehul Agrawal, Ruchit Agarwal, and Gajendra Jangid, Cars24 has quickly become a widely used business across India mainly due to the ease of use over its competitors.
The Cars24 system is very simple. To sell a car, all the user must do is enter car details into the Cars24 website, receive an initial price evaluation, go to one of Cars24’s many different branches for an inspection and valuation, and then sell the car within the hour without having to worry about the paperwork, as Cars24 offers free RC transfer. As a result, Cars24 has been the subject of significant revenue and usage numbers.
In fact, Cars24 is set to make over $600 million in annual sales this year. 2020 has been a successful year for the company as transactions have soared to over 2 million units with a website engagement increase of over four times larger than pre-pandemic levels. Cars24 recently launched a portion of their business, which now buys and sells two-wheel vehicles such as motorcycles and Vespas. In less than six months of operations, over 3,000 two-wheel vehicle transactions have occurred, reinforcing the almost absurd strength of the Cars24 platform.
As it stands, the company buys cars from users in around 130 cities, and perhaps more importantly, sells cars to consumers in a staggering 400 different cities. These sorts of numbers have brought in investors willing to provide major funding for Cars24 as they continue to expand.
Cars24 Funding, Valuation, and Future
Cars24 recently raised an outstanding $200 million in the company’s Series E funding round. This most recent funding round was led by DST Global, with participation from Exor Seeds, Moore Strategic Ventures, and Unbound as well. Given this level of funding and strong revenues and growth in 2020, Cars24 was valued at over $1 billion, making it an official unicorn in the market. Cars24 represents the only unicorn valued company in the entire mobility industry and just the fifth to receive this status overall since the onset of the COVID-19 pandemic.
While this is all major news for Cars24, the company is by no means coasting from here on out. Especially considering this most recent funding round doubled all funding the company has received up to this point, there are major plans for the future. Cars24 plans to use this recent boost in capital to invest in new technologies, innovate and improve existing products, and scale new business verticals. All of these factors will certainly lead to more growth while also actively equipping the company to handle the influx of new customers as the scope of the user base expands, giving Cars24 a very positive outlook on the future.
Cars24 is a unique startup for many reasons, but of the many reasons that set the company apart from others, it’s the unicorn valuation status that simply cannot be ignored. The growth it has seen during the COVID-19 pandemic has been especially impressive given the economic downturn that much of the automobile industry has been subjected to. The focus on used cars in India has granted the company a massive customer base, and the widespread locations across hundreds of cities have opened that market to as many of those customers as possible.
About the Author
Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.