Vehicle Portal Cardekho joins the unicorn club with $250 million funding led by Leapfrog Investments & Others
According to sources, the pre-IPO deal includes $200 million in Series E equity and $50 million in debt. The fresh financing values CarDekho at $1.2 billion, exceeding the $1.2 billion threshold for a unicorn firm.
Canyon Partners, Harbor Spring Capital, Mirae Asset, Franklin Templeton, and current investors Sequoia Capital India and Sunley House also participated in the round.
According to persons familiar with the situation, the funds will be used to expand the company's used automobile, financial services, and insurance businesses, as well as extend into other areas.
An emailed request for comment on the development received no response from CarDekho.
In November 2019, CarDekho raised $70 million in a Series D fundraising sponsored by Hong Kong-based Ping An, which controls Global Voyager, at a valuation of $725 million. The corporation plans to raise financing on June 10, 2021, according to sources.
CarDekho Cofounder and CEO Amit Jain said at the time that the funds would be used to grow the company's recently created ecommerce site for selling secondhand automobiles, which has received a lot of interest since the pandemic began.
Consumers seeking personal mobility choices to limit the risk of infection at a lower cost amid economic uncertainty have raised demand for old automobiles since the start of the pandemic.
Every year, the lndian market sells up to 4.4 million secondhand cars. The industry expects the market, which is presently dominated by unorganised firms, to double in size by 2026.
Over the next five years, when new-generation automobiles with higher gross merchandise value enter the supply chain, the market value of vehicles sold is predicted to triple to $60 billion.
CarDekho is aiming for a double-digit market share in India's pre-owned automobile market over the next five years, but rivals Cars24 and Spinny are putting up a fight.
CarDekho, which sells cars online in the National Capital Region, Mumbai, and Bengaluru, wants to expand to the country's top 20 cities by March 2022, according to Jain. By the end of current fiscal year, the company wants to sell 4,000-5,000 vehicles each month on its ecommerce site.
Ratan Tata, Sequoia India, Hillhouse Capital, Ping An, Sunley House, CapitalG (previously known as Google Capital), HDFC Bank, Axis Bank, Times Internet, Trifecta, Kreatif Media Karya, and Dentsu are among the investors who have backed CarDekho. Bennett Coleman & Co Ltd.
CarDekho.com, Gaadi.com, ZigWheels.com, and BikeDekho.com are all part of the Jaipur-based CarDekho group, which was founded in 2008. After HDFC Bank, ICICI Bank, and Mahindra Finance, its fintech platform is the fourth largest used automobile retail loan originator in India.