CARS24, an Indian autotech unicorn, is looking to expand its foothold in Thailand later this year as part of its international expansion plan in Southeast Asia.
The plan comes after it recently raised US$340 million (around 11.5 billion baht) in a series F funding round led by DST Global, Falcon Edge and SoftBank Vision Fund 2, along with participation from Tencent and existing investors Moore Strategic Ventures and Exor Seeds.
The new funding round is meant to drive the startup's international expansion and technology investment as well as facilitate consumer financing.
The fresh funding has pushed up CARS24's value to $1.84 billion.
"By end of this year, CARS24 is set to launch in Thailand as the first country in Southeast Asia," Abhijeet Dabas, chief executive of CARS24 in Southeast Asia, told the Bangkok Post.
CARS24 is the market leader in India's online used car segment with over 90% market share. It launched operations in UAE and Australia this year.
According to him, Southeast Asia has a large internet-savvy population and a large and growing used car market worth $50-60 billion.
"We believe that with our learnings from other markets around the world as well as local market research, we can fundamentally transform the customer experience in the region," said Mr Dabas.
The used car market in Thailand is already large and will continue to grow driven by an increased preference for personal safety and the better economic viability of purchasing used cars, he said.
He said he is aware that buying or selling a used car in Thailand is fraught with challenges.
"We believe that we have the technology and experience to be able to improve this experience significantly for customers," said Mr Dabas.
"Our efforts will be directed to encourage consumers to embrace the simplicity and convenience of buying their next car entirely online, the same way they can buy fashion, mobile gadgets, or home appliances online."
In Southeast Asia, the sales volume of used cars is 1.3 times that of new vehicles with the prospect of a further marked increase in the near future, he said.
Rising safety considerations due to the pandemic and increasing value consciousness are driving an ever higher number of consumers towards pre-owned cars as they look to traveling safely and buying smart, he said.
Economic pressures brought up by the pandemic also made customers consider buying used cars as a credible alternative to new vehicles.
"We believe that technology will fundamentally change the way consumers can access and eventually buy a car. We bring the largest assortment of over 1,000 cars for customers to make the right choice," said Mr Dabas.
A seven-day full refund is offered if buyers are not satisfied with the car they have purchased, he said.
"We perform thorough 150-point checks and refurbish vehicles using experts. All cars come with a 12-month warranty. Customers can be assured that cars are of good quality," said Mr Dabas.