CarDekho is India’s leading search venture where you can buy second-hand cars. Apart from that, its website includes exclusive automotive content. Such as reviews of experts, detailed info on specs and prices, and comparisons of all car brands and models that you can find in India.
The company operates some of the leading auto portals like-
- OTO.com (Indonesia & Malaysia)
- Carmudi (Philippines)
Carmudi & Gaadi are for new cars and old cars respectively. Not only it serves as a knowledge-based eCommerce website for car enthusiasts. But also as an eCommerce platform for used cars. Amit Jain founded this company in 2008. It serves in both B2C and B2B space. As of May 2023, CarDekho valuation is Rs. Rs.9,919 crore.
Fundings & Shareholders Breakdown
CarDekho was in the limelight because it raised a whopping amount of $200 million from LeapFrog Investments. Also, it received another massive funding of $110 million. This funding occurred along with the participation of existing investors like CapitalG, Hillhouse Capital Group, and Sequoia Capital India. Also, these are the leading shareholders of the company CarDekho. Let’s look at the latest funding rounds of CarDekho-
|Venture Capitalist (Lead Investors)||Funding Amount|
|LeapFrog Investments||$200 million (Rs.1,653 crore)|
|Ping An Global Voyager||$70 million (Rs.578 crore)|
|CapitalG, Hillhouse Capital Group, Sequoia Capital India||$110 million (Rs.909 crore)|
|Sequoia Capital India||$2.5 million (Rs.20.66 crore)|
Currently, the market valuation of CarDekho is Rs.1,653 crore. Unfortunately, the company has not disclosed the percentage of shares owned by each shareholder in the current fiscal year.
In the initial days of CarDekho, it included several significant investors namely-
- Google Capital
- Tybourne Capital
- Hillhouse Capital
- Sequoia Capital
- HDFC Bank
- Ratan Tata
- Times Internet
However, many of them exited later but some of them still exist as prominent shareholders of the company.
Is CarDekho profitable?
The query on profitability is obvious for a company with a humongous valuation. Don’t you wonder whether it is profitable or not despite being valued at Rs.9,919 crore?
You will get to know it by looking at the data in the following tables-
|CarDekho’s Financials||Amount (in crores)|
|Market Valuation||Rs.9,919 crore ($1.2 billion)|
|Revenue Earned||Rs.1,597 crore|
|Profit/Loss||Loss of Rs.535 crore|
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.
CarDekho earned revenue from the following sources-
|Revenue Sources||Amount Earned|
|Sale of used cars||Rs.799 crore|
|Advertising and digital marketing solutions||Rs.505 crore|
|Commission of dealer sales||Rs.217 crore|
|Insurance Brokerage||Rs.48 crore|
|Other Operating Revenue||Rs.28 crore|
Now look at the following expenses that led to the losses for the company “CarDekho.”
|Cost of materials consumed||Rs.816.8 crore|
|Employee benefit expense||Rs.573 crore|
|Advertising & promotional expense||Rs.408 crore|
|Outsourcing and subcontracting charges||Rs.156.8 crore|
|Server hosting charges||Rs.24.4 crore|
|Other expenses||Rs.156.8 crore|
It looks like CarDekho strived hard in the fiscal year 2022. CarDekho valuation was Rs.9,919 crore. 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.