India-based auto marketplace Cars24 has raised $13.45 million in a Series B debt funding round.

As per an exclusive report by Entrackr, Cars24’s regulatory filings with MCA show that the company has allotted 1,000 series B debentures to Trifecta Venture Debt Fund-II at a fair value of $13,453 per share. Reportedly, these are unlisted secured debentures for a period of 12 months.

Cars24 previously raised $200 million in an equity round, taking its post-money valuation to $1 billion for the first time. This round, led by DST Global and joined by other existing investors, also made the company the first unicorn among the pure-play auto marketplaces in India. The company used the proceeds for pan-India and foreign expansion.

Cars24 recently earmarked $100 million for foreign expansion, setting its sights on the Middle East and Southeast Asian markets. This move was preceded by expansion into both the UAE and Australia, where the service is now operational. The company is actively buying used cars in both the countries and increasing its fleet.

Increasing funding and expansion activity can be attributed to the upturn in the used cars segment in India. Due to the need for private transport during the pandemic, many customers are in the market for cars, but are priced out in the new cars segment. As a result, for every five new cars, eight used cars are being sold in India.

Consequently, Cars24’s revenues doubled in FY20, while losses reduced significantly. Rivals CarDekho and CarTrade have witnessed similar traction, adding to their expansion strategies. CarDekho is scaling its market footprint in Southeast Asia, while CarTrade is heading for an IPO.

Founded in 2015, Cars24 was initially a b-to-b marketplace, purchasing used cars from customers, but later expanded to a b-to-c model, offering customers the opportunity to buy used cars online. The company also acquired an NBFC license in 2020 for its financial services, and later ventured into motorcycle business. In addition to its new operations in the UAE and Australia, it operates in over 130 cities in India.

 

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