CarDekho’s FY24 Loss Declines 39% To INR 340 Cr

Auto marketplace CarDekho Group managed to trim its consolidated net loss by nearly 40% to INR 340.08 Cr in the financial year 2023-24 (FY24) from INR 566.13 Cr in the previous fiscal year. 

The Jaipur-based startup managed to rein in its loss on the back of cost savings from the company shutting down its retail used car business.

Meanwhile, operating revenue fell 3.49% to INR 2,250.43 Cr during the fiscal year under review from INR 2,331.88 Cr in FY23. 

As a result of the startup winding down its used car retail business in May 2023, its revenue from products declined 81% to INR 176.64 Cr in FY24 from INR 952.22 Cr in FY23.

CarDekho earns revenue by selling advertisements and digital marketing solutions to automakers and by selling used cars to dealers. It also earns brokerage from insurance companies on insurance policies placement and earns a portion of its revenue from offering software development and maintenance services.

Founded by siblings Amit and Anurag Jain in 2008, CarDekho Group operates various platforms in the autotech and finance sectors, including CarDekho.com, InsuranceDekho, Rupyy, Revv and more. Last year, the startup entered the tractor segment by adding TractorsDekho to its product portfolio.

The Group also owns Singapore-based CarDekho SEA (Carbay Pte. Ltd.), which operates OTO Indonesia as well as Zigwheels.com and Carmudi in the Philippines. In December 2024, the company’s southeast Asian entity raised $60 Mn in its first external funding round from Navis Capital Partners and Dragon Fund.

Overall, CarDekho has raised more than $692.10 Mn in funding till date and entered the unicorn club in 2021. It is backed by the likes of Peak XV Partners, Hillhouse Capital, Times Internet, Tybourne Capital, Google Capital, among others.

It is pertinent to note that CarDekho is aiming to go public later this year. The company reportedly plans to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a $500 Mn (about INR 4,100 Cr) public issue at a potential valuation in the range of $2 Bn to $2.5 Bn.

Where Did CarDekho Spend?

CarDekho managed to trim its total expenses by 8.62% to INR 2,669.39 Cr in FY24 from INR 2,921.21 Cr in the previous year. 

Employee Benefit Expenses: The spending under this head rose a mere 1.16% to INR 642.29 Cr during the year under review from INR 634.89 Cr in FY23. Employee benefit expenses include salaries, wages, bonus, among others.

Outsourcing & Sub-Contracting Charges: The company spent INR 547.21 Cr under this head in FY24 as against INR 422.66 Cr in FY23. 

Expenses For Insurance Broking: The cost under this bucket soared 3,528% to INR 301.17 Cr in the fiscal under review from INR 8.3 Cr in the previous year. 

Cost of Material Consumed – This expense saw a major decline to INR 151.28 Cr in the year under review, down 65.51% from INR 438.67 Cr in FY23. This comes at the back of reduction in the purchases of stock-in-trade by the company. This amount is spent by the company to purchase finished goods to run its business. 

Marketing Expenses: The spending on marketing and advertising expenses rose 13.62% to INR 700.49 Cr from INR 616.49 Cr in FY23.

CarDekho competes with the likes of CarTrade and Spinny.