CarDekho, a used car marketplace owned and operated by Girnar Software, has reported a 40% surge in its revenue in FY18 for the period ending March 2018. The company earned $21.6 Mn (INR 160 Cr) in revenue as compared to $15.6 Mn (INR 116 Cr) in FY17.
The company further claimed to have halved its losses to $9.4 Mn ( INR 70 Cr) from $18.2 Mn (INR 135 Cr), it clocked in FY17.
The growth came on heels of its insurance and finance businesses launched over the last two years. It was in August 2016 when CarDekho first offered digital loans to the used car dealers.
Later in May 2017, the company procured Insurance Regulatory and Development Authority (IRDA) license to launch the auto insurance vertical under Girnar Insurance Brokers Pvt Ltd.
Related Article: CarDekho Reports 62% Hike In Its FY19 Revenue
CarDekho: FY 18 Data crunch
- The used car business is said to have 3,000 dealers out of a 5,000-strong dealer network
- Insurance business covers over 800 dealers, over 450 dealers offer financing services for used cars
- Claims to have reached breakeven at an EBITDA level as of September this year
- Disbursed the loans worth over $135.3 Mn (INR 1,000 Cr) compared to $27 Mn (INR 200 Cr) disbursed last year
- The company processes loans worth $8.1 Mn (INR 60 Cr) each month for the financing of used cars
- Currently processes about 5600-6000 policies each month with monthly premiums crossing $13.5 Mn (INR 100 Cr)
“The new car business is growing at an annual growth rate of 40% while the used car business is growing aggressively at almost 150%. At this rate, we will eventually see the used car business overtake the new car business to form over 50% of the revenues in the next 4-5 years. This is also because there is a far more predictable pattern for used car buying,” CarDekho co-founder and CEO Amit Jain said in a media statement.
CarDekho: Pressing Accelerator Hard On Full Gears
Among players such as Droom, Cartisan, Bumper, Pitstop, among others, CarDekho is accelerating on the road to success at full speed.
CarDekho aims to construct a complete ecosystem for consumers to have easy and complete access to not only buying and selling cars but also manage their entire ownership experience including accessories, tyres, batteries, insurance or roadside assistance.
Other services offered to the used car dealers are website designing, website development, ecommerce site building, mobile app development, internet marketing, among others.
Earlier this year, in August, CarDekho acquired Indian Automotive Youtube channel PowerDrift Studios Pvt Ltd, to come up with the “best-in-class” video content as a visual treat and decision-enabler for its stakeholders.
GirnarSoft, which has its offices in Jaipur, Hyderabad, Gurugram and Mumbai, was founded in 2007 by Amit Jain and Anurag Jain. Besides CarDekho.com and Gaadi.com, the company also owns BikeDekho.com, Zigwheels.com, BusesDekho.com, among others.
[The development was reported by ET.]