CarDekho, an Indian search and e-commerce platform for new and used cars, has turn out to be the newest startup on the earth’s second-largest market to achieve the unicorn standing.
The 14-year-old startup stated on Wednesday it has raised $250 million — $200 million in fairness and $50 million in debt — in its Series E financing spherical. The spherical, which valued the Jaipur-headquartered agency at $1.2 billion, was led by LeapFrog Investments.
Canyon Partners, Mirae Asset, Franklin Templeton, Harbor Spring Capital in addition to present buyers Sequoia Capital India and Sunley House additionally participated in what CarDekho has described as its pre-IPO spherical.
One of the earliest startups in India, CarDekho has expanded to over 100 markets, it says. The startup, which buys automobiles from clients after which sells them, provides a list of greater than 3,000 licensed pre-owned automobiles for on-line buy.
CarDekho additionally gives clients with monetary providers — the flexibility to pay in installments — and insurance coverage protection on automobiles they buy from the platform. It stated its monetary providers enterprise is already worthwhile, whereas that of insurance coverage has reached the “breakeven” level. (The startup says it really works with over a dozen monetary establishments to offer loans to clients and over three dozen insurance coverage companies.)
It works with nearly all car makers in India, and contributes 30% of their annual gross sales. It additionally works with over 3,500 new auto sellers and over 4,000 used automobile sellers, merchants and entrepreneurs. It stated the agency exceeded $100 million income run-rate within the final month.
Auto e-commerce usually has low penetration globally, with India and U.S., for instance, having a 1% penetration, in keeping with analysts at Bernstein. “This is largely because the auto market still requires physical inspections and the target market skews towards used vehicles — an unorganized market. The total addressable market in India is around $220 billion, which includes used vehicle purchase by consumers, auctions and remarketing, growth potential for the new vehicles market, and financing and advertisements. The total addressable market for only the used car market in US is over $800 billion,” they wrote in a report earlier this yr.
“CarDekho, from being a car research portal, has evolved to become a complete ecosystem for car buying, lifecycle management and selling,” stated Amit Jain, co-founder and chief government of CarDekho. “We are committed to empowering our customers and providing them with a convenient and hassle-free experience.”
He stated the startup will deploy the contemporary capital to increase its used automobile and monetary providers companies. “The trust and conviction of our investors will help us to accelerate our growth plans whilst we provide our customers with an experience that will continue to redefine car buying and selling.”
The startup can be working to increase its catalog to over 10,000 automobiles within the “near future,” it stated.
Wednesday’s announcement provides CarDekho to an inventory of practically three dozen different Indian startups which have earned that coveted standing this yr. Several high-profile buyers, together with Tiger Global, Sequoia, SoftBank, Falcon Edge Capital and Temasek, have elevated the tempo of their investments in India in current quarters. (For some context, India has about 50 unicorns now.)