CARS24 raises $ 20 million in debt financing from CBD
- India-based automotive e-commerce platform CARS24 has raised 75 million dirhams ($ 20 million) in local debt financing from the Commercial Bank of Dubai (CBD), to fuel its operational expansion in the United Arab Emirates .
- Founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal, CARS24 launched its operations in the United Arab Emirates market in May 2021 with a presence in Australia, Saudi Arabia and Thailand. It allows its customers to buy / sell used vehicles online, providing them with inspection services with a seven day return policy and two year warranty.
- This debt financing will further strengthen CARS24’s commitment to the UAE market and provide significant funding flexibility and leeway to grow its inventory.
CARS24, the leading e-commerce platform for used vehicles, has announced that it has raised Dh75m ($ 20m) in local funding from the Commercial Bank of Dubai (CBD), one of the largest banks of the United Arab Emirates. This borrowing facility further strengthens CARS24’s commitment to the United Arab Emirates market and provides significant financing flexibility and leeway to increase its inventory. Furthermore, it is a testament to CBD’s willingness to support its clients’ ambitions and to support new-age lending in the UAE’s digital ecosystem.
The agreement was signed between Dr Bernd van Linder, CEO of CBD, and Vikram Chopra, co-founder and global CEO of CARS24. The company, valued at $ 1.8 billion, is one of the world’s most valuable private used car startups. The debt financing follows the company’s $ 450 million global funding round in September of this year.
Dr Bernd van Linder, CEO of Commercial Bank of Dubai, said: “CBD has always been concerned with improving the overall business environment in the UAE and supporting startups, as they are vital contributors to the growth of the country’s economy. Since last year, there has been a huge increase in the number of online2 offline businesses, in part due to the recent global pandemic, and we see a clear need to support these businesses and provide them with the funds they need. need to grow and develop.
After signing this agreement, Vikram said that “the UAE is a very important and strategic market for us. Raising these funds from CBD at this point will further consolidate our leadership position and as a brand we are delighted that the bank has supported our business model. “
CARS24 started operations in the UAE in May 2021, and since then the company has sold over 2,000 cars and all of these transactions have been done entirely online. In September of this year, CARS24 announced that it would invest an additional Dh367 million ($ 23 million) in the UAE and other GCC countries to further expand its presence.
CARS24 is currently backed by renowned investors such as Sequoia, SoftBank, Falcon Edge, DST Global and Kingsway Capital. In addition, CARS24 benefits from the sponsorship of great cricket MS Dhoni as an investor and brand ambassador. Due to the company’s growth-oriented business model, it has received $ 1 billion in funding since its launch in 2015.
“The UAE market has great potential and we want to set the stage for 2022 with a strong 4th quarter this year. Economic indicators quickly turned encouraging and positive after World EXPO 2020, and as a result, we have already seen an impact significant on our sales, ”concluded Vikram.
All vehicles on the CARS24 platform undergo an inspection check of more than 150 points and are completely reconditioned. In addition, these cars go through a rigorous RTA test before being listed online. Every car purchased from CARS24 comes with a 7 day return policy and a 2 year warranty.