Vehicles24: Used auto e-portal Vehicles24 vrooms to $1 billion valuation

BENGALURU: International expertise funding agency DST International, which has backed Indian startups like Swiggy, Udaan, Ola and Byju’s, is main a $200-million funding in Vehicles24. This might make the web platform for promoting used vehicles the most recent entrant to the a lot coveted unicorn membership — these with a valuation of over $1 billion. The transfer has helped Vehicles24 double its valuation in a couple of 12 months because it final raised $100 million at a valuation of $500 million.
Vehicles24 is the fifth startup to emerge as a unicorn throughout the pandemic. The whole variety of unicorns created this 12 months now stands at eight (see graphic). In 2019, India noticed 9 new unicorns. Vehicles24 co-founder and CEO Vikram Chopra advised TOI the corporate has surpassed pre-Covid gross sales. In contrast with February, gross sales at the moment are 20% larger. It’s going to use the brand new capital to enter the two-wheeler area and supply after-sales providers.
Different startups whose valuation reached $1 billion or extra this 12 months embrace fintech ventures Pine Labs, Zerodha and Razorpay, software program enterprise Postman, edtech enterprise Unacademy, e-commerce agency FirstCry, and sweetness retailer Nykaa.

The brand new funding spherical noticed participation from Vehicles24’s present buyers together with Exor Seeds, Moore Strategic Ventures, and Unbound. Began in 2015, it’s presently clocking annualised gross sales of $600 million, in contrast with round $480 million in February, mentioned Chopra. “We at the moment are at round 4% market share within the used automobile area in India, whereas it’s about 12% in New Delhi. Our agenda is to develop our general market share to double digits,” he mentioned.
Due to large tailwinds, he mentioned it is a nice time to get into different classes that may full the worth chain. “Most evident one is two-wheelers. We launched it a couple of months in the past and are seeing higher traction than vehicles. Then we want to get into servicing,” Chopra mentioned.
The Gurgaon-based agency additionally gives financing by means of its NBFC arm and is aiming to scale up its financing programmes additional, for each sellers and customers. For brand new vehicles, financing penetration is round 80%, whereas for used vehicles it’s solely about 15%. “It’s as a result of the market is unorganised,” Chopra mentioned. Its rivals embrace companies like Olx, CarDekho, and Spinny. It buys vehicles from sellers in about 130 cities however sells these autos in round 400 cities.

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