CARS24 has closed a fresh $400 million funding round at a valuation of $3.3 billion. The Series G investment includes a mix of $300 million in equity funding led by Alpha Wave Global and a $100 million debt financing backed by financial institutions.

This is the third funding garnered by the Gurgaon-based online used car platform in the span of one year. The firm amassed about $840 million in equity investments during the period. The startup had last bagged $450 million in funding from investors in September at a valuation of $1.84 billion.

Talking to Fortune India, Gajendra Jangid, co-founder and CMO at CARS24, said that the demand for used cars has skyrocketed in the post-pandemic world. Also, consumers are increasingly subscribing to new age companies that are digitising the process of car buying and selling while offering doorstep services. Citing public data, Jangid said that nearly 45% of customers are now opting for online car transactions, shunning traditional mode of purchasing and selling cars.

Jangid said that a big portion of the fresh capital will be deployed to augment the infrastructure of servicing used cars. The company is investing heavily in setting up mega refurbishment labs or what they call MRL in India and Dubai. To put it simply, MRLs are workshops covering around one lakh square feet that are equipped with high tech machinery to refurbish cars. Besides, CARS24 plans to double down on global expansion. The startup is already present in the UAE, Australia, Thailand.

“We will expand further in the Middle East. Within south east asia, Indonesia and Malaysia are also on our radar,” said Jangid. In India, the strategy will be to deepen operations within the existing locations given that the company has already covered about 70% of the market, he added.

Founded in 2015, CARS24 claims to have reported a growth of 50% in the last quarter, clocking over 90% market share in the online used car segment. “We have grown 100% in CY21 as compared to CY20. International markets contribute about 20% to our total revenues now,” said Jangid.

The CARS24 CMO said that the company would look at launching an initial public offering (IPO) in the next two years. “It is a work in progress,” said Jangid.

The online used cars space has been buzzing with investor activity of late. Earlier this month, Spinny turned unicorn after it scored a fresh $283 million in funding from investors at a valuation of $1.8 billion.

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