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Cars24 eyes $2 Bn valuation🚙
Dunzo-Tata talks stuck, Cred to enter P2P lending, PhonePe gets $50 million, and more.
We recently reported that used automobiles are growing in popularity among Indian customers. A well-known marketplace is now aiming to close a new investment round at a valuation of $2 billion.
Also included in this letter:
Dunzo-Tata talks stuck on deal terms.
Cred to enter peer-to-peer lending with user funds.
Hot Shorts (A brief update on funding deals).
India’s rank in crypto adoption globally.
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Cars24 to raise $350 million, aims to float an IPO🚗
Cars24 — an online marketplace for used cars — is in the final stages of closing a $300-350 million fundraise at a post-money valuation of $2 billion (about Rs 15,000 crore), underscoring the investor interest in this growing segment of India’s auto sector.
The company clocked annualized sales of $600 million late last year compared to around $480 million in February.
The pre-owned segment of India’s auto industry has received a pandemic boost, as people are increasingly opting for personal mobility over public transport for commuting in the aftermath of localized lockdowns.
Also Read: India’s tech-driven auto evolution
Bloomberg reported that the Gurugram-based company has also begun talks for an initial public offering (IPO) and is planning to make a stock market debut in 18 to 24 months.
Dunzo-Tata talks stuck on deal terms🤷🏻♂️
Tata Digital's potential investment in Dunzo is stuck as the hyperlocal startup doesn't want to give majority control. This comes at a time when Tata-owned BigBasket is bullish on quick delivery of groceries as other e-commerce players are also in a race to supply essentials to consumers within 10-30 minutes.
Dunzo, which has doubled its annualized gross merchandise value or GMV to $200 million, does not want to give up majority control. It is open to the idea of Tatas becoming the single largest shareholder but doesn’t want to be owned by the Tatas.
Both BigBasket and 1mg were also finalising separate deals from financial investors when the Tatas approached them. Clearly, the Tatas managed to convince both the companies and acquired them.
Hot Shorts ⚡
AgNext Technologies has raised $21 million in the largest Series A funding round for an Indian agritech startup so far. The company aims to expand to international markets using fresh capital.
Meamo, a meat delivery company, has acquired omnichannel meat provider ChopServe in an all-stock deal. The combined entity is now valued at $40 million.
PhonePe gets $50 million from Tencent but won't use it in India due to restrictions imposed on foreign investment from countries that share a land border with India.
Cred to enter peer-to-peer lending with user funds💪🏻
Fintech startup Cred will enable peer-to-peer (P2P) lending for its members. P2P is a lending model via an online platform that matches lenders with borrowers.
Cred Mint, launched in partnership with P2P non-bank LiquiLoans, will allow users to ‘invest’ their savings in a capital pool, which will then be used to on-lend to other customers on the platform seeking personal loans.
Those investing in the product will earn an interest of around 9%, while loans will be disbursed at a rate of 12-13%, Kunal Shah said. Cred will allow users to put between Rs 1 lakh and Rs 10 lakh of their capital into the lending pool.
Since its launch as a credit card repayment player in 2018, Cred has forayed into e-commerce, lending, payments, and now investment segments.
Tweet of the day🐥
✅ India has been ranked second in terms of crypto adoption, a new report by blockchain data platform Chainalysis showed.
✅ The amount of money raised in IPOs this year has reached $8.8 billion, already surpassing the totals of the past three years though it’s only August.
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