It’s been in the newspapers and across online business news channels that Cars24 is arranging for its next round of funding to the tune of $25-30 million from new set of investors.
– by Deepak Kaistha
Does this mean the existing ones have put their foot down? None reported the other side of the story.
The Economic Times reported:
“Cars24 is in the final stages of closing a fresh equity-financing round, estimated at $7-8 million, as the online used car marketplace looks to expand its presence across the country”
Cars24 has had a great run for last 3 years and have dug its heels nicely into the used cars market despite facing stiff competition from significant CarsDekho.
Other players like CarsTrade, Droom Technoligies may look
insignificant at this juncture but have managed to attract fundings and will come into the fold sooner rather than later.
OLX and Quikr are in the game too and are definitely – the Mayawati and Akhilesh of this world – who will chew numbers and spoil the party for the front runners in someway or the other 🙂
Coming back to Cars24 winning strategy – after having to invest into marketing and promotions, the company is all set to take its technology stack to the next level.
And needless to say the company is able to excite new line of investors with its renewed go to market plan and as reported by ET, Cars24 is setting up for $30 million.
Majority of technology startups in India
have gone wrong and many of them have dug their own grave investing heavily into manpower following the footsteps of Flipkart and Ola. Gone are the days.
The operation has to happen just on time and Cars24 has the done the right thing by focusing on reducing costs and
getting rid of all the extra fat. The organization is looking fitter, increased and geared up to make leaps in 2019.
Worthy of mention, India sees a sale of 5 million used cars annually viz 3.5 million new cars and so no surprises that Cars24 could raise around $100 million till date at a very healthy valuation of $500 million.
That said: monies are definitely coming for Vikram Chopra and Mehul Agarwal’s Cars24 – investors have identified this market as hugely potent for their monies to multiply but is that the key success factor – perhaps NOT. It’s never about MONIES – it’s about PEOPLE!