CarDekho, an Indian search and e-commerce platform for brand new and used vehicles, has turn out to be the newest startup on the planet’s second-largest market to achieve the unicorn standing.
The 14-year-old startup mentioned 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 present traders 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 vehicles from clients after which sells them, gives a listing of greater than 3,000 licensed pre-owned vehicles for on-line buy.
CarDekho additionally gives clients with monetary companies — the power to pay in installments — and insurance coverage protection on vehicles they buy from the platform. It mentioned 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 clients and over three dozen insurance coverage corporations.)
It really works with virtually 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 automotive sellers, merchants and entrepreneurs. It mentioned 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, based on analysts at Bernstein. “That is largely as a result of the auto market nonetheless requires bodily inspections and the goal market skews in direction of used automobiles — an unorganized market. The full 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 full addressable marketplace for solely the used automotive market in US is over $800 billion,” they wrote in a report earlier this 12 months.
“CarDekho, from being a automotive analysis portal, has advanced to turn out to be an entire ecosystem for automotive shopping for, lifecycle administration and promoting,” mentioned Amit Jain, co-founder and chief govt of CarDekho. “We’re dedicated to empowering our clients and offering them with a handy and hassle-free expertise.”
He mentioned the startup will deploy the contemporary capital to increase its used automotive and monetary companies companies. “The belief and conviction of our traders will assist us to speed up our progress plans while we offer our clients with an expertise that can proceed to redefine automotive shopping for and promoting.”
The startup can also be working to increase its catalog to over 10,000 vehicles within the “close to future,” it mentioned.
Wednesday’s announcement provides CarDekho to a listing of almost three dozen different Indian startups which have earned that coveted standing this 12 months. A number of high-profile traders, together with Tiger International, 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.)