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CarDekho in talks to raise $100 million in Series D round led by China-based Autohome Inc
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The Chinese strategic investor Autohome Inc is speculated to invest $70 million in the funding round making the firm's valuation at $700 million. By far, CarDekho has raised $202 million, including the latest financing round of $110 million.

Jaipur-based automobile firm CarDekho is in talks to raise $100 million in Series D round, led by China-based strategic investor Autohome Inc with a $70 million investment, valuing the firm at $700 million, two people aware of the talks reported requesting anonymity. They added, existing investor Sequoia Capital is also anticipated to invest from its $8 billion global growth fund.

CarDekho, a Girnar group subsidiary, operational since 2007, has built a complete ecosystem to enable its customers to have easy and comfortable access to purchasing and selling cars, as well as information on automobiles. 

Despite a continuing slowdown in automobile sales in India, the firm has observed strategic investor interest. The firm also desires to manage and improve the entire ownership experience by pushing the buying of accessories, tyres, batteries, and insurance and providing roadside assistance.

By far, CarDekho has raised $202 million, including the latest financing round of $110 million. Before this, the firm raised $75 million from investors like Times Internet, Hillhouse Capital, Tybourne Capital, and Sequoia Capital, among others.

 

CarDekho- growth in revenue, drop in pre-marketing burn

In April, CarDekho announced that it plans to buy back shares worth $2.5 million from its employees in 2019 under the Girnar group ESOP repurchase plan. The firm circulated the offer letter to 71 employees eligible for participating in the repurchase plan. It has seen a 62% growth in its revenue to reach Rs 260 crore mark in FY’19. An 8% drop in its pre-marketing burn amounting to Rs 138 crore was reported for the year. Overall, the company claimed Rs 145 crore exit run rate in the financial year ending in March 2019.

The second-hand car selling-buying platform is looking forward to leverage and plays a significant role in the Indian EV segment (electric vehicle segment), set to boom by 2021-22. Other popular Indian online used car platforms are Cars24, Droom, Quikr, and Olx, among others. According to a report issued by IBEF, the Indian auto industry accounts for 7.1% of the country’s GDP.

The report pinned the Indian automobile market at $125 billion, out of which $100 billion is the estimated share of the automobile sales, and the left $25 billion includes services. The industry is expected to grow at a rate of about 10% to a whopping $225 billion by 2020. 

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A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

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Saumya Uniyal
Saumya Uniyal
A passionate writer with bachelor’s in the field of English & Journalism. Other than being a bibliophile, some of her hobbies are travelling, photography and poetry.

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