India’s Cars24 valuation nearly doubles after $450 million raise By Reuters

By Rama Venkat

BENGALURU (Reuters) -Indian used-car platform Cars24 mentioned on Monday it raised $450 million from buyers together with SoftBank Group, practically doubling its valuation to $1.84 billion, as demand for private transport soared in the course of the pandemic.

Automobile gross sales have picked up in latest months as curbs ease and other people keep away from public transport, however carmakers have been hit by semiconductor shortages which have disrupted manufacturing. The used-car market has additionally seen a pick-up in latest months.

Demand for used automobiles is at an all-time excessive, Cars24 Chief Govt Officer Vikram Chopra mentioned in an emailed assertion to Reuters.

With the chip crunch driving up costs, automakers reminiscent of Maruti Suzuki India, Tata Motors (NYSE:) and Mahindra and Mahindra have taken manufacturing hits and raised costs of sure automobiles.

That’s anticipated to profit Cars24, nevertheless, as carmakers have warned that the output hits may stifle their means to satisfy heated demand in the course of the upcoming festive season.

The demand for pre-owned automobiles is anticipated to see a major uptick within the subsequent few months, Chopra mentioned.

Cars24, based in 2015, dominates over 90% of India’s on-line used-car market and operates throughout greater than 130 cities in India.

The brand new fund increase included a $340 mln Sequence F fairness spherical that includes investments from SoftBank’s Imaginative and prescient Fund 2, Tencent Holdings (OTC:) Ltd and DST World, Cars24 mentioned, together with $110 million in debt from monetary establishments.

“With this funding, we are going to proceed to penetrate into current automotive, bikes and financing enterprise in India whereas venturing into new abroad geographies this 12 months,” Chopra mentioned in a separate assertion.