CARS24 raises $100m in funding to expand its Australian operations

Olga Rudenko, Chief Executive Officer at CARS24 Australia

Australia’s CARS24 has announced the closing of a $100 million debt facility to fund the expansion of its local operations following a successful market launch in September 2021.

The first round of funding was led by Melbourne based global fund manager, IFM Investors, with advisory from Neu Capital and legal representation from Hamilton Locke.

CARS24 attracts substantial funding

CARS24 is committed to the Australian market and has over one thousand and four hundred used cars available to be purchased online, supported by over 150 local employees.

The debt facility furthermore facilitates the strengthening of CARS24’s strong commitment and provides significant funding flexibility and headroom to grow its inventory.

Olga Rudenko, the Chief Executive Officer at CARS24 Australia appreciated the funding.

“We set out to transform the way Australians buy a new used car and we are incredibly excited to share that CARS24 has closed its first round of local funding in the market.”

“The funding reinforces the strength of the CARS24 business model in providing Australians with a long overdue solution to the traditionally painful used car buying experience, through delivering a convenient and trustworthy approach so as to buy a used car online.”

“Backed by this latest facility, we are extremely confident that we can continue to grow in this market by offering Australian used car buyers greater convenience and value.”

CARS24 enters new markets

This debt funding follows the company’s global $450 million funding round in September this year, which saw CARS24 expand its global presence to new markets, including Australia.

CARS24 officially launched in Australia in September 2021, and is the first business in the market to offer a 100% online used car buying experience, all from the comfort of a client’s home, purchase in under five minutes with their new car delivered direct to their door.

IFM Investors Executive Director for Debt Investments Hiran Wanigasekera is buoyant.

“We are pleased to support the innovation and growth aspirations of CARS24 while generating positive returns for our investors, who are superannuation and pension fund members.”

“This is an example of how companies have a competitive alternative to traditional capital sources when accessing the debt facilities they need to fund their expansion plans.”

CARS24 stakeholder commentary

Neu Capital’s Director Edward Jones applauded the initiative.

“CARS24 brings much needed trust, transparency and confidence to the Australian used car market which has traditionally been fraught with consumer risk.”

“We are proud to be the advisor on securing $100m from IFM to fund the growth of CARS24.”

CARS24 has established physical operations in Victoria, Queensland and New South Wales.

The company recently launched in South Australia and has plans to expand into additional markets including the Australian Capital Territory, Tasmania and regional Queensland.