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Auto marketplace CARS24’s Singapore-based parent, Global Car Group Limited, has infused INR 345.2 Cr (around $40 Mn) in the startup.
CARS24’s board approved the allotment of 3.04 Lakh equity shares to Global Car Group at an issue price of INR 11,347 per share on July 21, according to the startup’s Registrar of Companies (RoC) filings accessed by Inc42.
While the startup didn’t respond to Inc42’s queries on the funding, a source close to CARS24 said that the capital will primarily be used for working capital needs and strengthening its core offerings.
The fundraise comes over a year after Global Car Group pumped in INR 250 Cr in CARS24. The funding rounds came at a time when the startup is gearing up for an IPO. Last year, its cofounder Gajendra Jangid said that CARS24 was internally preparing for its IPO. However, he didn’t give any timeline for public listing.
Founded in 2015 by Jangid, Vikram Chopra, Ruchit Agarwal, and Mehul Agrawal, CARS24 operates an online marketplace for buying and selling used cars. It also offers financing, insurance assistance, warranties, and other value-added services. In May this year, the startup also ventured into the new car market.
Ahead of its probable IPO, CARS24 is doubling down on profitable verticals while shutting or downsizing other verticals.
It shut its B2B vehicle spare parts platform ‘Inspare’ earlier this year. CARS24 also wound down the consumer-facing parts of its car servicing and maintenance platform ‘FourDoor’and on-demand driver hiring platform AutoPilot. This resulted in the startup laying off over 300 employees.
Besides India, CARS24 has a presence in Australia, the UAE, Southeast Asia and the Middle East. In April, the startup also acquired automotive forum Team-BHP.
On the financial front, CARS24 reported a 25% rise in revenue to INR 6,917.1 Cr in FY24 from INR 5,529.6 Cr in the previous year. However, net loss widened 7% to INR 498.4 Cr from INR 467.7 Cr in FY23, driven by investments in technology, data science, and customer experience.
The post Exclusive: CARS24 Raises INR 345 Cr From Singapore-Based Parent appeared first on Inc42 Media.
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