ETtech Deals Digest: Cars24, Razorpay raise funds

Cars24 gets $400 million

Cars24, an online platform which sells used cars,
closed a $400 million financing round led by Alpha Wave Global, formerly Falcon Edge Capital.

This includes a $100 million debt component which has been sourced from investors like Commercial Bank of Dubai and IFM Investors in Australia.

After the funding, Cars24’s valuation has jumped more than 80% from its previous funding in September to $3.3 billion. At that time, the company had
closed a $450 million funding which was led by the likes of SoftBank Vision Fund, Alpha Wave Global and Yuri Milner’s DST Global. The Gurgaon-headquartered company was valued at $1.8 billion back then.

ET first
reported in its November 29 edition about the latest fundraise. The report had said the company was in the final stages of discussions to mop up new funds at a significantly higher valuation.

Razorpay gets $375-million funding

Razorpay
raised $375 million (Rs 2,850 crore) in a new funding round led by US-based investors TCV, Lone Pine Capital and Alkeon Capital, after which its valuation has grown to $7.5 billion—a jump of two-and-a-half times in eight months.

The Bengaluru-based payments gateway platform had in April this year
raised $160 million at a post-money valuation of $3 billion. The company has seen a seven-fold increase in its valuation in a little over a year
since it turned unicorn.

ET reported in its November 10 edition that TCV, an investor in Netflix and Airbnb,
was in talks with Razorpay to participate in the new funding round.

OfBusiness valued at nearly $5 billion

OfBusiness, a business-to-business (B2B) commerce startup,
bagged $325 million from Alpha Wave Global (formerly Falcon Edge Capital), Tiger Global and SoftBank Vision Fund 2.

After this new round, OfBusiness said its valuation has jumped to nearly $5 billion. Alpha Wave Global invested around $175 million in this round while Tiger Global and SoftBank put in $100 million and $50 million, respectively.

ETtech

This round also includes a secondary share sale of around $140 million whereby existing investors Matrix Partners India, Creation Investments and Zodius Technologies sold part of their shares.

Bizongo raises $110 million

Bizongo, a business-to-business ecommerce and supply chain enablement platform,
landed $110 million in a new funding round led by New York-based Tiger Global, taking its valuation to $600 million.

The round also saw CDC and IFC EAF joining as new investors. It also involved existing investors B Capital, Chiratae Ventures, Schroder Adveq, IFC and Add Ventures by SCG. Manish Choksi, a member of Bizongo’s advisory board and vice chairman at Asian Paints, also invested in his personal capacity.

Zepto’s valuation surges to $570 million

Signalling the frenetic dealmaking in the so-called ultrafast delivery segment, Mumbai-based Zepto
raised $100 million led by its existing investor Silicon Valley startup incubator Y Combinator’s Continuity Fund.

The Mumbai-based company, which is among the most buzzy startups this year, has more than doubled its valuation to $570 million post the funding in just two months when it last raised $60 million at a valuation of $225 million.

Other key deals

Jumbotail, a business-to-business e-commerce company that supplies groceries to mom-and-pop stores,
raised a Series C round of $85 million. The funding was led by Artal Asia Pte. Ltd., an affiliate of Invus, a global equity investment firm with over $10 billion of evergreen capital under management.

Captain Fresh, a business-to-business (B2B) online marketplace for seafood,
secured $40 million in a new round of funding co-led by Tiger Global and Prosus Ventures (formerly Naspers Ventures).