Jaipur-based online platform to buy and sell cars, CarDekho, has witnessed a 62% growth in its revenue to reach INR 260 Cr mark in the financial year ending on March 2019. The Girnar Software-owned company attributed this growth to the company’s performance in the used car segment.
The company’s used car business and affiliate services (insurance, financing etc) revenue has led to a 140% year-on-year growth for the company.
“With the sole focus on becoming ‘OEM’ (original equipment manufacturer) of used cars in India, we strengthened our focus on supply and demand side transactions for channel partners. Going ahead, we plan to streamline the business more and add further value to our customer’s experience.” Amit Jain, cofounder of CarDekho, said in a media statement.
Related Article: CarDekho To Buyback ESOPs Worth $2.5 Mn From 71 Employees
Key TakeAways From CarDekho’s FY19 Financials
- Claims a $21 Mn (approx INR 145 Cr.) exit run rate in FY19
- Reported an 8% drop in its pre-marketing burn amounting to $0.2 Mn (approx INR 138 Cr.) for the year
- Retail auctions platform Gaadi has reportedly posted over 800 car transactions in 12 stores across Delhi-NCR in the past two months
- Shared plans to expand Gaadi to over 30 stores across Delhi and Bengaluru by the end of April 2019
Improvement From Previous Fiscal (FY18)
The revenues in FY19 are almost 22% higher than the previous fiscal year. In the previous financial year ending March 2018, CarDekho had reported a 40% surge in its revenue. The company had reported an earning of $21.6 Mn (INR 160 Cr) in FY18 revenue as compared to $15.6 Mn (INR 116 Cr) in FY17.
The New car business grew 40% year-on-year in the previous fiscal. The unit had an exit run rate of $26.4Mn (approx Rs 182 crore), staying in the green despite the slump in new car sales during the year.
CarDekho Plans For FY20
With the recent $110 Mn Series C funding round, CarDekho is now looking to leverage and play an important role in the Indian electric vehicle (EV) segment, set to boom by 2021-22. So far, CarDekho has raised $202 Mn, including the latest funding round.
At the same time, the company is also taking efforts to increase verticals in the auto segment. Its last two acquisitions — Carbiqi and PowerDrift Studios marked its entry in the offline and online retail auction model for selling pre-owned cars as well as video content production respectively.
Also, the company will further look to strengthen its international presence in countries such as Malaysia, the Philippines, and Indonesia, under the brand names of CarBay and OTO.
The Indian automotive industry is expected to reach $251.4 Bn – $282.8 Bn by 2026 and the country is expected to emerge as the world’s third-largest passenger vehicle market by 2021. The industry attracted foreign direct investment (FDI) worth $19.29 Bn during the period April 2000 to June 2018, according to data released by the Department of Industrial Policy and Promotion (DIPP).