Cars24, an Indian-based online platform for used car retail, is currently in the final stages of fund raising around $80 million. This latest round of funding was led primarily by existing investors who might be prepared to invest an additional $50 million into the company.
This would include investors like Sequoia Capital, Kingsway FCI Fund, and KCK Global.
In addition there is unconfirmed news that the company is setting up an additional $30 million on funds from new investors. Neither the new fund raising efforts nor the possible new investors could be confirmed.
Currently the platform has already fund raised around $100 million and is valued at around $500 million. Cars24 hasn't had much difficult finding new funds for the company or any trouble finding large companies to invest in them. Some previous investors include Yuri Milner, a Russian billionaire, and EXOR N.V., a major investment company.
The company has been doing this in an already busy market. Other companies have been starting up and creating their own digital used car platforms and also seen success while raising funds. These include startup companies like CarDekho, CarTrade, Droom Technologies, Quikr, and OLX.
Plenty of investors are excited about the used car market and the new companies around it. Used car sales are consistently above new car sales. And India's market is estimated to have sold around 5 million used cars compared to the 3.5 million new cars sold.
The country already has a trend toward used vehicles is thanks to the lower prices and the view of car ownership overall.