CarDekho Group credited the increase in revenue to the growth in InsuranceDekho, car financing platform Ruppy, and auto and financing business in SouthEast Asia
Despite the rise in revenue, CarDekho Group’s net loss rose marginally to INR 562 Cr in FY23 from INR 535 Cr in FY22
The Group said its core businesses turned EBITDA positive in the first two quarters of FY24 and PAT positive in the second quarter of FY24
Used- and new-car marketplace CarDekho Group’s consolidated operating revenue increased nearly 1.5X to INR 2,331 Cr in the financial year 2022-23 (FY23) from INR 1,600 Cr in the previous fiscal year.
In a statement, CarDekho credited the increase to the growth in its insurance arm InsuranceDekho, car financing platform Ruppy, and auto and financing business in SouthEast Asia.
It must be noted that InsuranceDekho’s net loss declined 29% to INR 51.5 Cr in FY23 from INR 72.2 Cr in the previous fiscal year, while operating revenue doubled to INR 96.4 Cr.
CarDekho said its revenue grew in FY23 despite the startup discontinuing its used car franchise retail and consumer to dealer businesses last year. This move was driven by inviable unit economics and a strategic shift towards a more prudent capital allocation, focusing on an asset-light business model, it added.
Despite the rise in revenue, CarDekho Group’s net loss rose marginally to INR 562 Cr in FY23 from INR 535 Cr in the previous fiscal year. However, adjusting for the exceptional one-time mark to market gain of INR 290 Cr from investments in associates, the FY23 loss declined to INR 246 Cr, the statement added.
CarDekho said he group’s profitability improved significantly in the second half of FY23 due to the benefits of operational leverage and the reset of the used car business
“A focus on optimising unit economics has also allowed the core businesses to turn EBITDA positive in the first two quarters of FY24 as well as PAT/ net income positive for second quarter of FY24 in its pursuit to drive profitable growth,” it added.
CarDekho said its cash reserve at the group level stands at over INR 1,200 Cr, which it will use for organic and inorganic growth projects. A significant portion of this reserve will be allocated to InsuranceDekho, which has secured more than INR 1,700 Cr in funding since February this year.
Founded in 2007 by Amit Jain, who appears as a judge on reality TV show Shark Tank India, and Anurag Jain, CarDekho operates a range of auto platforms, including Gaadi.com, ZigWheels.com, BikeDekho.com, and PowerDrift.com.
In 2021, CarDekho attained unicorn status after raising $250 Mn in its Series E round, valuing the company at $1.2 Bn.
India’s used-car market, which was already experiencing consistent growth, has seen an increase in the growth following the Covid-19 pandemic. It is now anticipated to surpass the growth rate of the new car market. According to a report, the value of India’s used-car market was estimated to be $23 Bn in FY22, and it is projected to clock a compound annual growth rate (CAGR) of 19.5% until FY27.