CarDekho will use the raised funding to accelerate growth in used cars, financial services and insurance businesses, create brand awareness and expand the market with new product features.
On Wednesday, jaipur based automobile startup CarDekho announced that it has raised $250 Million in pre-IPO round funding achieving unicorn status and reaching the valuation of $1.2B
The funding was headed by LeapFrog Investments, a global impact investor focused on financial services and healthcare access.
LeapFrog will support the company’s plans to deliver quality and affordable vehicles, insurance, and finance to millions of new emerging consumers. Improved mobility remains a proven driver of access to healthcare, education, and employment opportunities.
Other new investors who participated included US-based Canyon Partners, Mirae Asset, and Harbor Spring Capital. CarDekho’s existing investors Sequoia Capital India and Sunley House invested further, reaffirming their confidence in the company.
CarDekho, Co-founder and CEO, Amit Jain, said, “The company which has been just a car research portal and evolved to become a complete ecosystem to buy a car, lifecycle management and selling. We have always been a customer first company by providing a convenient and hassle-free experience. The new fundraise will help us expand our used car transactions and financial services businesses. The trust and conviction of our investors will help us to accelerate our growth plans whilst we provide our customers with an experience that will continue to re-define car buying and selling.”
Growth Journey of CarDekho
CarDekho has reached a point where they are actively working with 3500+ new auto dealers and 4000+ used car dealers, homegrown traders, and entrepreneurs. Currently they have collaborated with 14+ financial institutions and 40+ insurance companies to facilitate used car finance and insurance, providing a seamless experience to both used car buyers and sellers.
According to the startup, the company has crossed the breakeven point for its digital platforms, New Auto & InsuranceDekho.com.
Commenting on the investment, Stewart Langdon, Partner and Co-Head of South Asian Investments, LeapFrog Investments, said,
“Amit and the team have done an outstanding job in building the leading digital platform in India’s auto-tech market. We expect the business to continue on its rapid growth trajectory, thanks to the calibre of the team and the extraordinary tailwinds this segment now enjoys from increasing formalisation, digitisation, and transparency.
“CarDekho is an outstanding platform for large scale social impact, already making vehicles more accessible, affordable and trustworthy for over three million emerging consumers. Improving access to mobility in this way will help to drive development in other key areas, such as healthcare and education.”
Shailesh Lakhani, Managing Director, Sequoia India, said, “Amit, Anurag, and the team at Cardekho have built a business that has far exceeded our initial expectations. Several of their business units hold leadership positions, and are now building further expertise in the used cars and financial services space where they are strongly positioned. The team at Sequoia India continues to be strong believers in their long-term success.”
“We are thrilled to continue our support of CarDekho and their mission to be the leading retail auto and financial services provider in Southeast Asia. Since our initial investment, the company has had tremendous growth, establishing itself as the largest tech-auto platform in India. We are confident that this new investment will enable CarDekho to accelerate its growth in the auto retail market while capitalizing on the sizeable addressable market in auto insurance,” added Abhinav Sharman, Director, Sunley House Capital.
Numis and Credit Suisse acted as the financial advisors to CarDekho.