CarDekho, an Indian search and e-commerce platform for brand new and used automobiles, has grow to be the most recent 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 Sequence E financing spherical. The spherical, which valued the Jaipur-headquartered agency at $1.2 billion, was led by LeapFrog Investments.
Canyon Companions, Mirae Asset, Franklin Templeton, Harbor Spring Capital in addition to current buyers Sequoia Capital India and Sunley Home additionally participated in what CarDekho has described as its pre-IPO spherical.
One of many earliest startups in India, CarDekho has expanded to over 100 markets, it says. The startup, which buys automobiles from prospects after which sells them, gives a listing of greater than 3,000 licensed pre-owned automobiles for on-line buy.
CarDekho additionally supplies prospects with monetary companies — the flexibility to pay in installments — and insurance coverage protection on automobiles they buy from the platform. It stated its monetary companies 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 prospects and over three dozen insurance coverage companies.)
It really works with virtually all vehicle 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 typically has low penetration globally, with India and U.S., for instance, having a 1% penetration, in keeping with analysts at Bernstein. “That is largely as a result of the auto market nonetheless requires bodily inspections and the goal market skews in the direction of used automobiles — an unorganized market. The entire addressable market in India is round $220 billion, which incorporates used automobile buy by customers, auctions and remarketing, progress potential for the brand new automobiles market, and financing and commercials. The entire addressable marketplace for solely the used automobile market in US is over $800 billion,” they wrote in a report earlier this 12 months.
“CarDekho, from being a automobile analysis portal, has developed to grow to be an entire ecosystem for automobile shopping for, lifecycle administration and promoting,” stated Amit Jain, co-founder and chief govt of CarDekho. “We’re dedicated to empowering our prospects and offering them with a handy and hassle-free expertise.”
He stated the startup will deploy the recent capital to increase its used automobile and monetary companies companies. “The belief and conviction of our buyers will assist us to speed up our progress plans while we offer our prospects with an expertise that can proceed to redefine automobile shopping for and promoting.”
The startup can be working to increase its catalog to over 10,000 automobiles within the “close to future,” it stated.
Wednesday’s announcement provides CarDekho to a listing of practically three dozen different Indian startups which have earned that coveted standing this 12 months. A number of high-profile buyers, together with Tiger International, Sequoia, SoftBank, Falcon Edge Capital and Temasek, have elevated the tempo of their investments in India in latest quarters. (For some context, India has about 50 unicorns now.)