CarDekho’s revenue up 62% to Rs 260 crore
Google-backed auto classifieds portal CarDekho grew its revenue 62% to about Rs 260 crore in the year ended March 2019, on the back of strong performance in the used car segment.
The Gurgaon-based Girnar Sofware, which runs CarDekho, said that revenues earned from its used car business and affiliate services such as insurance and financing achieved a 140% year-on-year growth. The business unit posted a $21 million (approx Rs 145 crore) exit run rate in FY19, said a company statement.
“The supply of used cars is already created because the market is dependent on cars sold around four years back. It’s a sustained and predictable model based on number of cars sold three to four years ago unlike the new car market,” said Amit Jain, co-founder and CEO of CarDekho.
CarDekho’s new car business grew 40% year-on-year in the previous fiscal. The company said the unit had an exit run rate of $26.4million (approx Rs 182 crore), staying in the green despite the slump in new car sales during the year.
In terms of losses, the company said it was able to reduce its pre-marketing burn 8% to $0.2 million (approx Rs 138 crore) for the year. However, marketing is usually the single largest contributor to losses for new-age internet businesses in India. The company did not disclose its overall losses for FY19.
Jain said the company’s consumer-to-dealer auctions platform Gaadi posted transactions of over 800 cars in 12 stores across Delhi-NCR in just two months. The company plans to expand this to over 30 stores across Delhi and Bengaluru by the end of April and will be significant business into which CarDekho will invest going forward.
In January this year, CarDekho said it raised $110 million in its Series C funding round from investors Sequoia India, Hillhouse Capital, Capital G and Axis Bank, valuing the firm between $400 and 500 million.
Source: ET Tech