Shark Tank Judge Amit Jain’s CarDekho Posts 2X Jump In FY22 Revenue To INR 1,597 Cr

Used- and new-car marketplace CarDekho’s operating revenue almost doubled to INR 1,597.4 Cr in the financial year 2021-22 (FY22) from INR 884.3 Cr in the previous fiscal year

Sales of used cars continued to be the biggest source of revenue for CarDekho in FY22. During the year under review, the startup earned INR 799.1 Cr by selling used cars, up 63% from INR 489.1 Cr in FY21, as per the filings of its parent entity, GirnarSoft, with the Ministry of Corporate Affairs. 

Besides selling cars, the startup also earns revenue through listing advertisements and branding activities through its websites and mobile applications like Bikedekho, OTO, Gaadi, among others. The startup also earns revenue by offering subscription services to businesses. 

In FY22, CarDekho earned INR 798.3 Cr through these other sources of revenue, categorised as services, a jump of 102% from INR 395.2 Cr in FY21.

Overall, the startup’s total revenue, including other income, jumped 76% to INR 1,646.3 Cr from INR 936 Cr in FY21. 

This increase in revenue translated to a decline in the startup’s net loss. CarDekho’s net loss stood at INR 246.4 Cr in FY22, a decline of 28% from INR 342.8 Cr in the previous fiscal year.

On the expenditure front, CarDekho’s total expenses rose 70% to INR 2,170 Cr in FY22 from INR 1,277.6 Cr in the previous fiscal year. Purchase of used cars accounted for the major source of expenses, like its rival CARS24. CarDekho’s cost of purchase of used cars shot up 63% to INR 970.8 Cr in FY22 from INR 594.4 Cr in the previous fiscal year.

The startup spent INR 573.1 Cr on employee benefit expenses, up 32% from INR 434.6 Cr in FY21. 

Advertising expenses zoomed 130% to INR 408.1 Cr from INR 177.5 Cr in FY21. It must be noted that a sharp rise in advertising expenses is a common phenomenon across used-car marketplace startups, including Droom, Spinny and CARS24. 

CarDekho’s EBITDA margin improved to -11%  in FY22 from -32.2% in FY21. 

Founded in 2007 by Amit Jain, who appeared as a judge in TV show Shark Tank India, and  Anurag Jain, CarDekho also operates other auto platforms such as Gaadi.com, ZigWheels.com, BikeDekho.com and PowerDrift.com. 

CarDekho entered the coveted unicorn club in 2021 after it bagged a $250 Mn Series E round at a valuation of $1.2 Bn. The funding round, comprising $200 Mn of equity funding and $50 Mn debt funding, was led by Leapfrog Investments. It also saw participation from Canyon Partners, Mirae Asset, Harbor Spring Capital and existing investors Sequoia Capital India (now Peak XV Partners) and Sunley House.

Earlier this year, CarDekho shut down its B2C retail business in a bid to cut expenses. Interestingly, CarDekho’s insurance arm InsuranceDekho bagged $150 Mn in its Series A round earlier this year amid the funding winter. 

India’s used-car market, which was already growing at a steady pace, has received a boost post the Covid-19 pandemic and is now expected to outpace the growth of the new car market. As per a report, India’s used-car market was estimated to be worth $23 Bn in FY22 and is estimated to clock a CAGR of 19.5% till FY27.