Online auto classifieds portal CarDekho, owned by Girnar Software Pvt Ltd has raised $110 million in Series C funding, with investments from Sequoia India, Hillhouse, CapitalG (Alphabet growth investment arm) and Axis Bank.
Bengaluru, 03 Jan, 2019. RedNewswire/-
CarDekho, the Jaipur – based company was founded by Amit Jain and Anurag Jain back in 2008. This funding is in addition to the $75 million raised in previous rounds. The portal last raised about $15 million from Google Capital and Hillhouse Capital in March 2016.
The raised funds will be used to expand its various business verticals which include insurance and financing for the used car segment.
CarDekho CEO and co-founder Amit Jain said, “We plan to infuse the raised capital in used car business, insurance and finance verticals…These segments have huge potential to scale up and we are completely focused on getting them to a massive scale.”
With this latest round of funding, the company has so far raised a total of $185 million, he added.
CarDekho was reportedly also talking to Chinese internet giant Tencent for funding in the latest round. Other investors in CarDekho include Tybourne Capital, HDFC Bank, Times Internet, Ratan Tata, Dentsu and Trifecta.
CarDekho is directly working with more than eight car and motorcycle manufacturers, and accounting for 15-30% of their combined annual sales. CarDekho also works actively with 5,000 dealerships across India influencing more than 42% of the retails happening through their counters.
In addition, it works in collaboration with more than 10 financial institutions across the country to facilitate used car financing and provide a seamless experience for both buyers and sellers, said the company.
CarDekho has also been quite active on the acquisitions front. It acqui-hired used cars platform Carbiqi in November last year. As part of the deal, Carbiqi’s team was to join CarDekho’s used car vertical in Gurugram. Its parent Girnarsoft acquired PowerDrift, an automotive channel on YouTube, in August.
The company also has a presence in international markets under the brand names of ZigWheels and OTO, covering diverse countries such as Malaysia, Philippines, and Indonesia. OTO.com is the number one auto site in Indonesia.
“Since Sequoia India’s initial investment, Cardekho has been executing well, and today has many exiting business lines contributing to their growth,” said Shailesh Lakhani, Managing Director, Sequoia Capital India Advisors. “Sequoia India remains a strong believer in the team led by Amit – and look forward to deepening the partnership going forward.”
“We are pleased to expand our partnership with CarDekho, the clear leader in revolutionizing the Indian car market,” said David Rhee, partner at Hillhouse Capital. “We look forward to continuing to work with CarDekho’s management team as they leverage their deep knowledge of the sector to better serve India’s growing automotive market.”
“We have been impressed with Amit and the Cardekho team’s ability to maintain market leadership in the auto space and run a capital efficient business,” said Kaushik Anand, Head of India investments at CapitalG. “We are excited for their continued growth and are thrilled to support them in their long term journey.”
“Our used cars engine has scaled up tremendously and has also enabled us to incubate allied businesses like insurance and finance as they are one of the largest opportunities ahead of us,” Jain said.
The opportunity lies in extending formal credit and insurance coverage to the new-to-formal economy population and will continue to be a focus area for the company, he added.