BENGALURU, Sept 20 (Reuters) - Indian used-car platform
Cars24 said on Monday it raised $450 million from investors
including SoftBank Group, nearly doubling its valuation
to $1.84 billion, as demand for personal transport soared during
Car sales have picked up in recent months as curbs ease and
people avoid public transport, but carmakers have been hit by
semiconductor shortages that have disrupted production. The
used-car market has also seen a pick-up in recent months.
Demand for used cars is at an all-time high, Cars24 Chief
Executive Officer Vikram Chopra said in an emailed statement to
With the chip crunch driving up prices, automakers such as
Maruti Suzuki India, Tata Motors and
Mahindra and Mahindra have taken production hits and
raised prices of certain vehicles.
That is expected to benefit Cars24, however, as carmakers
have warned that the output hits could stifle their ability to
meet heated demand during the upcoming festive season.
The demand for pre-owned cars is expected to see a
significant uptick in the next few months, Chopra said.
Cars24, founded in 2015, dominates over 90% of India's
online used-car marketplace and operates across more than 130
cities in India.
The new fund raise included a $340 mln Series F equity round
featuring investments from SoftBank's Vision Fund 2, Tencent
Holdings Ltd and DST Global, Cars24 said, along with
$110 million in debt from financial institutions.
"With this investment, we will continue to penetrate into
existing car, bikes and financing business in India while
venturing into new overseas geographies this year," Chopra said
in a separate statement.
(Reporting by Rama Venkat in Bengaluru; Editing by Devika