Cars24 receives Rs 312 Cr from parent entity

Soon after announcing the closure of its $100 million worth Series D round led by Unbound and KCK Global, used cars buying platform Cars24 has now received equity tranche of Rs 311.72 crore from its Singapore-based parent entity Global Car Group.

According to RoC filings with Ministry of Corporate Affairs (MCA), the Gurugram-based firm has issued 7,79,313 equity shares of Rs 10 each at a premium of Rs 3,990 each share aggregating to Rs 311.72 crore.

The Vikram Chopra-led company had kicked off its Series D round in September this year when it had raised the first tranche worth $52 million from KCK FZE and others.

Entrackr had exclusively reported about Cars24’s Series D round in September.

Floated by former Fabfurnish co-founders Chopra and Mehul Agrawal, Cars24 has an asset-heavy model, which buys the car on behalf of dealers. It counts OLX (via Cash My Car) and CarDekho among direct competitors.

The four-year-old firm operates via 176 branches across India. Last year, it had opened the first consumer-facing offline outlet in South Delhi Vasant Square Mall (Vasant Kunj).

Currently present in 50 Indian cities, the firm has plans to expand to 200 cities by 2020.

In August, Mahendra Singh Dhoni had also invested an undisclosed amount in Cars24 as a part of series D round. Following the deal, Dhoni became the brand ambassador and owned equity in the company.

In a bid to control the burn rate and efficiency, Cars24 had fired over 400 people in several tranches. It also received a legal notice from a clutch of landlords for alleged defaults of payments and had to shut down various stores in NCR region.

This is the second equity funding received by Cars24 from parent entity in 2019. Previously, the firm had raised Rs 77.5 crore in April.