CarDekho Group Joins Hands With Raya Holdings To Enter UAE Market

Auto marketplace CarDekho Group has expanded into the United Emirates Arab (UAE) market in partnership with Egypt-based Raya Holdings.

In a statement, the startup said it is counting on its offerings like advertising, lead management, and digital content solutions to penetrate the used cars market in the UAE. It also said that it plans to modify its insights and lead management systems to better suit the requirements of consumers in the region.

“Our expansion into the UAE reflects our commitment to harnessing technology to meet the evolving needs of car buyers. From lead management systems to AI-driven consumer insights, we aim for our platform to align with the preferences of UAE customers,” CarDekho cofounder and COO Anurag Jain said.

Outside India, the Jaipur-based unicorn already has a presence in the Southeast Asian market. It operates under the brand name OTO in Indonesia and Carmudi and Zigwheels in the Philippines.

CarDekho will provide the range of services in the UAE which it provides in Southeast Asia. Besides, it is also exploring additional offerings such as auto insurance and extended warranties tailored to the local market, the startup said.

It is pertinent to mention that the startup’s Southeast Asian arm recently raised $60 Mn in a funding round from Navis Capital Partners and Dragon Fund in December. The round valued CarDekho SEA, the Southeast Asia unit and a subsidiary of CarDekho Group, in a range of $300 Mn to $400 Mn.

Founded in 2008 by Amit and Anurag Jain, CarDekho Group operates across segments like used cars reselling via CarDekho.com, insurtech via InsuranceDekho, fintech via rupyy and shared mobility via Revv.

Besides, it also runs automotive content platforms such as BikeDekho, ZigWheels, and PowerDrift. It is backed by investors including Peak XV Partners, Hillhouse Capital, CapitalG, Ratan Tata Trust, LeapFrog, HDFC Bank, ICICI Bank and Axis Bank.

The startup’s international expansion plans come as it gears up for a public listing. In September, it was reported that CarDekho was looking to file its draft red herring prospectus (DRHP) by March. Back then, it was in talks to appoint bankers for an initial public offering (IPO) with a plan to raise nearly $500 Mn. However, there haven’t been any updates about the IPO since then.

On the financial front, CarDekho was able to reduce its consolidated loss by 40% to INR 340 Cr on a year-on-year basis in the fiscal year 2023-24 (FY24).  Meanwhile, operating revenue declined 3.5% to INR 2,250.4 Cr from INR 2,331.9 Cr in FY23.