Cardekho Revenue Doubles To Rs. 1597 Cr & Loss Increases In FY23

When it comes to second-hand cars, CarDekho stands out on the list. Reason? Apart from selling second-hand cars, its website is full of automotive content. These contents are immensely beneficial for folks who seek reviews from experts, detailed info on specs and prices, comparisons of all car brands and models, etc. In FY22, it grew at a decent pace but it couldn’t survive the blow of the gloomy market situation. Despite being valued at Rs. 9,919 crore ($1.2 billion), CarDekho revenue and profitability has become a matter of concern. It dipped into huge losses! What is the reason for that? You will come to know about it in this write-up.

Keep reading!

CarDekho Revenue breakdown

First of all, let’s look at the bright side of the company. In FY22, CarDekho earned revenue of Rs.1,597 crore. Do you know, how much it earned last year (FY21)? Rs.884 crore. It is time to compare the CarDekho revenue of the last two fiscal years.

CarDekho revenue increased in this fiscal year. The platform services i.e. sale of used cars generated the highest chunk of the revenue. The advertising and digital marketing solutions are a second contributor to CarDekho revenue. It is quite fascinating! Isn’t it? But there is an intense dark side to this scenario. Expenses! You will get to know about it in the next section.

Expenses

On the expense side, the cost of acquiring the used vehicle stock was the largest expenditure of the company. It accounted for nearly 37.6% of total expenses. Also, the company’s spending on employee benefits rose to 31.8% i.e. Rs.573 crore. Now look at the overall expenses that led to the losses for the company “CarDekho.”

Now, you might have understood why CarDekho is drowning in deep losses despite earning massive revenue. However, the company looks at its expenses as potent investments that will contribute to a significant amount of revenue in the future. 

Financials of CarDekho

The financials of the company CarDekho is summarized in the following table-

So, here is your answer- “CarDekho was not profitable in FY22 because it dipped in the loss of Rs.535 crore.” Even though it earned an appreciable amount of revenue from its numerous revenue sources. But the cash outflow in various expenses was high as well. This means the amount spent on expenditures exceeded the amount of revenue earned. Eventually, it continues to face a significant amount of loss.  

Future Plans of CarDekho

It looks like CarDekho strived hard in the fiscal year 2022. Well, that’s not the case only with this company. It is planning to expand its business in the South and East Asian markets. Its prime objective is to establish itself as a leading player in the automobile ecosystem in India. As of now, it has already begun its operations in foreign countries like Malaysia, Indonesia, and the Philippines. Due to this expansion process, it had to spend a lot of money on expenses. Thus, it couldn’t make substantial profits in FY22. However, as per the officials, they are quite optimistic about their finances. As they believe that the expenditures are useful investments that will offer good returns in the future.