Auto marketplace CarDekho grabs $110M to double down on insurance and financial services – TechCrunch
CarDekho, a web-based marketplace for automotive gross sales in India, has pulled in a brand new $110 million Series C investment spherical from a snatch of present buyers to push deeper into financial services and insurance.
[Update] The corporate showed that the offers offers it a valuation of $400-$500 million, that’s consistent with a document from Economic Times one month in the past. The determine is up quite on a reported $360 million valuation from CarDekho’s earlier fundraising in 2016.
The deal takes the corporate to $185 million to date from buyers, which additionally come with Times Internet, Ratan Tata — Tata Group’s Chairman Emeritus — HDFC Bank and Dentsu.
Founded in 2005 as GirnarSoft, CarDekho operates a variety of on-line portals that promote new and second-hand vehicles and motorbikes in India. The corporate has additionally branched out into Southeast Asia the place it operates portals in Malaysia, Philippines and Indonesia and, on the content material aspect, it operates a YouTube channel and an auto weblog and critiques website.
CarDekho claims 39 million per thirty days distinctive guests to its web sites, and six million downloads of its apps. On the finance aspect, it mentioned income went from 114 crores ($16.three million) within the 2016-2017 financial 12 months to 160 crore ($22.eight million) in 2017-18. (The Indian financial calendar runs from April 1 to March 31.)
CarDekho claims to paintings “actively” with five,000 dealerships in India whilst it has direct retail partnerships with 8 automotive and motorcycle makers. It claims to affect 42 % of gross sales for the ones dealerships and 15-30 % of annual gross sales for the ones auto- and motorbike makers, even supposing the corporate didn’t supply explicit main points on the way it calculates the ones figures.
Beyond serving to facilitate gross sales, it additionally provides automotive financing in partnership with over 10 financial entities who be offering phrases to its shoppers. It has supplied insurance choices too since 2017 and, with this new investment within the bag, it mentioned that it intends to double down and construct out extra “transaction services” that cross hand-in-hand with auto gross sales.
“Our contribution to a person buying a new car has grown manifold and this will continue to be a bulwark for us. Our used cars engine has scaled up tremendously and has also enabled us to incubate allied businesses like insurance and finance business as they are one of the largest opportunities ahead of us. 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 us” mentioned CEO and co-founder Amit Jain in a commentary.
CarDheko is rivaled by means of the likes of CarTrade, which is sponsored Temasek and Warburg Pincus and earlier wolfed up rival CarWale, Truebil and Vehicles24, a carrier that buys vehicles from shoppers and resells them to sellers. Notably, Sequoia India may be an investor in Vehicles24.