One of the significant auto marketplaces in India, CarDekho, is gearing up for a big splash: it shall raise $500 million in an IPO next year. The company shall file a draft red herring prospectus by March 2025, raising nearly INR 4,100 crore. It could value CarDekho between $2 billion and $2.5 billion, almost double its valuation at $1.2 billion in 2021.
Thus, it can enhance the geographical footprint of CarDekho, diversify the product categories, and for future inorganic acquisitions. The sources stated that it will have an OFS component besides a primary component. The OFS will include some early investors in CarDekho-Peak XV, Google Capital, and Hillhouse Capital, who are selling part of their stakes.
Car Dekho: A Growing Portfolio Beyond Auto Listings
Car Dekho was founded in 2008 by brothers Amit and Anurag Jain; what began as a car listing platform is today a multi-faceted business. It runs its flagship car marketplace, an insurance platform called InsuranceDekho, and a lending platform, Rupyy. Over the years, it has raised more than $692 million in funding while squaring up against competitors such as CarTrade, Spinny, and Cars24. It is not the first time CarDekho has sought a public listing.
The company had pursued similar routes in 2021 but could not pursue them further. This time, though, things seem to be different for the company, especially after the appointment of former CFO of Mensa Brands and Pepperfry Neelesh Talathi to guide the financial management. Earlier in the year, CEO Amit Jain also mentioned that the company is working toward four to six quarters of profitability before hitting the market.
Revenue Growth and Path to Profitability
Revenue at CarDekho has jumped to INR 2,331 crore for FY23 from INR 1,600 crore a year ago. The group is already profitable, though loss is up marginally at INR 562 crore, compared to FY22 at INR 535 crore.
At the juncture when there is growing interest in Indian startups taking the liquidity route from the public markets—and the recent names include Ola Electric, FirstCry, and Go Digit—CarDekho’s entry into the bourses should continue its march towards garnering market strength in India’s already highly competitive auto marketplace.
