Written by Rama Venkat
BENGALURU (Reuters) – Indian used car platform Cars24 said on Monday it had raised 450 million from investors, including Softbank Group, which nearly doubled its value to 8 1.84 billion as demand for private transport increased during the epidemic.
Car sales have increased in recent months as restrictions have eased and people have avoided public transportation, but carmakers have been plagued by a shortage of semiconductors that have hampered production. The used car market has also seen a pick-up in recent months.
Cars24 CEO Vikram Chopra told Reuters in an email statement that demand for used cars was at an all-time high.
Prices have risen due to the chip crisis, with carmakers such as Maruti Suzuki India, Tata Motors (NYSE 🙂 and Mahindra and Mahindra have hit production and increased the price of certain vehicles.
This is expected to benefit the Curs 24, as carmakers have warned that manufacturing hits could reduce their ability to meet heated demand in the upcoming festive season.
Chopra said demand for pre-owned cars is expected to grow significantly in the next few months.
Founded in 2015, Cars24 dominates 90% of India’s used car market and operates in more than 130 cities in India.
The new fundraising includes a 3 340 million Series F equity round of investments from Softbank’s Vision Fund 2, Tencent Holdings (OTC: Ltd.) and DST Global, with debt 110 million in debt from financial institutions.
“Through this investment, we will continue to enter the existing car, bike and financing business in India as we enter new foreign geographical areas this year,” Chopra said in a separate statement.
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