Gajendra Jangid: Steering the Success of Cars24, the Used Vehicle Unicorn

Gajendra Jangid, the co-founder and Chief Marketing Officer of Cars24, is at the forefront of the company’s remarkable journey to redefine the used vehicle market in India. Cars24 has recently achieved significant milestones, with consecutive funding rounds, skyrocketing valuations, and ambitious global expansion.

Within just three months of raising $450 million in September, Cars24 secured another substantial $400 million in a Series G round of funding, featuring a combination of equity and debt. The equity round, led by Alpha Wave Global (formerly Falcon Edge Capital), along with participation from existing investors, added $300 million to the company’s coffers. Additionally, Cars24 secured $100 million in debt from a diverse group of financial institutions spanning India, Australia, and the United Arab Emirates. As a result of this latest funding, the online used vehicle platform’s valuation surged from $1.84 billion to $3.3 billion.

Gajendra Jangid sees this back-to-back funding as a testament to the company’s aggressive ambition to scale its global operations. The primary goal is to become a global leader in the used car industry. Cars24 has already ventured into Thailand and is strengthening its international presence since establishing its global account in the UAE in July last year. Global operations now contribute 20% to the company’s revenue.

The company’s backers are thrilled with its performance and global expansion. Navroz D Udwadia, Co-founder and Partner at Alpha Wave, which also led the previous funding round in September, expressed excitement in supporting Cars24 as it cements its leadership positions across India, the UAE, Australia, and other international markets. The investment aims to help Cars24 enhance its competitive advantages and achieve tenfold growth over the next few years.

As Cars24 expands aggressively, there have been strategic adjustments as well. The company recently decided to shut down its supply-focused vertical across 80 cities. Gajendra Jangid explained this as a “priority realignment.” These 80 cities accounted for less than 4-5% of the vehicle supply, so the focus is now on the top 100 cities that contribute over 96% of the supply. This realignment aims to concentrate efforts where they can add the most value to the business, with the possibility of re-entering these cities in the future.

Cars24 is also making significant investments in its capex plans. The company plans to establish seven Mega Refurbishment Labs (MRLs) across 35 acres in top cities. These MRLs are designed to refurbish approximately 20,000 cars each month. Five MRLs have already become operational in Delhi NCR, Ahmedabad, Mumbai, Hyderabad, and Chennai. Pune is set to go live this week, and Bengaluru will be operational by the end of the year. Gajendra Jangid emphasized that these capital expenditures are not viewed as being “capex-heavy” if they significantly improve the customer experience. Global operations seem to be a promising avenue for Cars24. In just a year and a half, 20% of the company’s revenues have originated from a select group of countries. Jangid emphasized that this share of revenue reflects the market size and the immense business opportunity. India’s used car market is valued at around $25 billion, while Australia’s market reaches $40 billion.

As Gajendra Jangid noted, the revenue share from each country corresponds to the market size. The company has successfully proven itself not only in India but also on the international stage. This achievement aligns with Cars24’s funding activities, showcasing the synchrony between their ambitious plans and the capital required to realize them.