Chennai: Cars24 recently announced its business milestone with a new round of funding of $200 million. It is said that the fresh financing will be used to strengthen the footprint of the company in business operations, technology and product innovation.
In a chat with News Today, Cars24 co-founder Gajendra Jangid speaks about the present scenario of the industry and much more.
“The Indian car market is still at a nascent stage and underpenetrated in comparison to its counterparts of developed markets. In India, car ownership stands at a meagre 3 per cent, creating a huge opportunity for the auto industry,” he says.
Jangid adds: “Additionally, more and more people are now investing in personal cars over public transportation, as consumers have become more aware and safety conscious, the sector is expected to grow at a CAGR of 10-15 per cent this decade.”
According to Jangid, post lockdown, we saw a surge in demand for pre-owned cars, largely driven by first-time buyers; who now account for 55-60 per cent of total buyers as opposed to 45 per cent pre-Covid.
On funding, he says, “In end November 2020, CARS24 raised $200 million in a series E funding round at a valuation over $1 billion. We are very proud to become India’s first unicorn in the auto segment.”