Cars24 Bags INR 250 Cr From Singapore-Based Parent Entity

Auto marketplace Cars24 has bagged INR 250 Cr ($29.8 Mn) funding from its Singapore-based parent entity Global Car Group Limited.

As per Registrar of Companies (RoC) filings accessed by Inc42, Cars24 Services Pvt Ltd’s board approved the allotment of 2.18 Lakh equity shares (2,18,132) to Global Car Group. 

“… Pursuant to provisions…, the consent of the board be and is hereby accorded to allot 2,18,132 equity shares of face value INR 10 each at a premium of INR 11,489 per share, aggregating to Rs 2,508,299,868,” noted the RoC filings. 

There was no clarity on how the Delhi NCR-based startup intends to use the newly infused funds. 

The fundraise comes close on the heels of Cars24 foraying into new segments to bolster its top line. For instance, in March, the car marketplace began piloting a new service which allows car owners to hire drivers on-demand on an hourly basis.

Additionally, in May this year, Cars24 also signed a letter of intent to join the state-backed Open Network for Digital Commerce (ONDC). The new capital may likely be deployed to fuel these new offerings. 

Founded in 2015 by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal, and Mehul Agrawal, Cars24 operates a marketplace to enable car owners to sell their used cars. It also allows users to purchase used cars via its platform and offline outlets. 

Backed by the likes of SoftBank, Alpha Wave Global, and Commercial Bank of Dubai, Cars24 has raised more than a billion dollars in funding till date and was last valued at north of $3.2 Bn. 

It competes with the likes of CarTrade, CarDekho, Spinny, and Droom. 

Cars24 narrowed its net loss by 32% to $168.3 Mn in the financial year 2022-23 (FY23) from $248 Mn in the previous fiscal year.

Meanwhile, its revenue jumped 16% to $930.3 Mn in the fiscal year ended March 2023 from $803.6 Mn in FY22. The unicorn is yet to file its financial statements for the fiscal year ended March 2024.