Indian Used Cars Platform CARS24 Sets Aside $100 Million For Expansion

NEW DELHI — E-commerce used car marketplace CARS24 said it would invest over $100 million to expand in international markets this year.

The company recently launched its business in Australia and the United Arab Emirates and said it’s ready to launch in Southeast Asian and the Middle East countries.

CARS24 said the investment would be used to build the brand in these new territories, a strong supply of cars for the platform, and a workshop to recondition cars to ensure top quality.

“In the past six years, we have worked very hard to revolutionize the way our consumers buy or sell their cars in India,” Vikram Chopra, co-founder and chief executive of CARS24, said.

CARS24 will use its India playbook to expand globally and continue to invest in technology to alter the consumer experience for the buying and selling of cars.

“Interestingly, the pain points of used car consumers across the globe remain pervasive. We are sure with our expertise and experience of operating in a diverse market like India. We will be able to cater to the needs of our new customers as well.”

“CARS24 is well-poised for explosive growth internationally, and we will continue to offer our burgeoning roster of offerings to newer markets that have been at the forefront of embracing new technology and innovation,” Chopra said.

CARS24 will use its India playbook to expand globally and continue to invest in technology to alter the consumer experience for the buying and selling of cars. (Atharva Tulsi/Unsplash)

Currently, CARS24 is shipping cars to customers across Dubai, Abu Dhabi, and Sharjah and to Brisbane in Australia, shortly followed by Sydney and Melbourne.

Founded in 2015 by Mehul Agrawal, Ruchit Agarwal, Gajendra Jangid, and Vikram Chopra, CARS24 offers customers the option of buying and selling pre-owned cars and bikes online along with financing options. CARS24 is operational in more than 130 Indian cities.

The Indian used car market was valued at $27 billion in 2020 and is projected to reach $50 billion by 2026, as the Covid-19 pandemic had a minimal impact on the industry.

“Covid -19 pandemic had a minimal impact on the industry,” a study by Mordor Intelligence states. “With the increased number of people preferring individual mobility and more finance options infused into the used cars market, the market is set to grow considerably.”

Amid the pandemic, the company started selling used cars completely online.

“The widely accepted process of buying a car is outdated, tedious, tiresome, and definitely not fit for today’s consumers,” Chopra said.

“The future of car buying is entirely online as it allows the buyers to buy what they like, and what they like is what they get on CARS24. To close the trust gap, we equip our consumers with a no-questions-asked seven-day return on the car.”

The company reached unicorn status—firms valued at $1 billion or more—in November last year after raising $200 million in funding led by DST Global and existing investors.

(With inputs from ANI)

(Edited by Abinaya Vijayaraghavan and Amrita Das)



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