CarDekho has raised $110 million in a Series C funding round from existing investors Sequoia India, Hillhouse Capital, Alphabet’s growth investment arm Capital G, and Axis Bank, reports Mint. The investment reportedly values CarDekho between $400-500 million, reports the publication.
CarDekho will utilize the funding to focus on the used car segment, and improve its transaction services, including its insurance segment InsuranceDekho, and its financing business. The company will focus on extending credit and insurance to the new-to-formal economy segment of the population.
Owned by Girnar Software, CarDekho has previously raised $75 million in funding over three rounds. This is its largest funding raised until now. CarDekho currently operates in Malaysia, Thailand, and Indonesia with Zigwheels.my, Oto.com and CarBay.my respectively.
Originally launched as a search platform for new and used cars, CarDekho has now expanded into offering car insurance and car loans.
- In August 2016, CarDekho launched a loan platform for used cars in partnership with lenders such as HDFC Bank, Axis Bank, Tata Capital and Mahindra Finance. In 2017, it partnered with NBFC Hero Fincorp to offer financing options for used car buyers.
- Note that Girnar Software operates its own auto insurance vertical ‘Girnar Insurance Brokers’ to offer insurance buying, locate cashless services garages, settle claims and offer documentation to car owners.
- CarDekho also runs a separate platform called TyreDekho, launched in 2015.
Diversification into the media: In August 2018, Girnar Software acquired Powerdrift – which is a YouTube channel for automotive content. PowerDrift uploads reviews of cars and bikes, and had 1.4 million YouTube subscribers. CarDekho also operates auto portal Zigwheels, which it had acquired from Times Internet for an undisclosed amount in 2015.
In FY17, CarDekho’s revenue increased 33% YoY in the new cars segment, with a total of 1000 new dealers onboarded. Significantly, the revenue from the used cars segment increased 72% YoY, with a total of 2400 total listed dealers.