The startup works directly with more than eight car and motorcycle manufacturers that make up for 15-30% of their combined annual sales.
Automobile portal CarDekho today announced raising its Series C round of funding worth $110 million from Sequoia India, Hillhouse, CapitalG (Alphabet growth investment arm) and Axis Bank.
“We plan to infuse the raised capital in the used car business, insurance and finance verticals…These segments have huge potential to scale up,” CEO and co-founder Amit Jain told PTI. The company total funding currently stands at $185 million, said Jain.
The startup works directly with more than eight car and motorcycle manufacturers that make up for 15-30% of their combined annual sales. CarDekho works with 5,000 dealerships across India. In addition, it works in collaboration with over 10 financial institutions across the country to facilitate used car financing.
“Our used-cars engine has scaled up tremendously and has also enabled us to incubate allied businesses like insurance and finance as they are one of the largest opportunities ahead of us,” Jain said.
The opportunity lies in extending formal credit and insurance coverage to the new-to-formal economy population and will continue to be a focus area for the company, he added.
CarDekho raised funding from Tata Group Chairman Emeritus Ratan Tata in 2015. Along with its other group sites like ZigWheels, Gaadi, PowerDrift and BikdeDekho, CarDekho competes with companies including Droom, Cars24, CarTrade, OLX and Quikr.
The company also has a presence in countries such as Malaysia, the Philippines and Indonesia under the brand names of ZigWheels and OTO.
CarDekho was launched in 2008 by Amit Jain and Anurag Jain and is amongst the earliest startups in automobile classifieds in India. Its other investors include Tybourne Capital, HDFC Bank, and Times Internet.
The startup is reportedly valued close to $500 million however exact value couldn’t be ascertained. So far, two acquisitions have been made by CarDekho including Gaadi.com in 2014 and Zigwheels in 2015.
According to market research firm Mordor Intelligence, the market for used car in India might hit $75-billion mark by 2023, with a CAGR of 15.2% during the forecast period of 2018-2023.