What The Financials
Inc42 unveils and deciphers all the important financial metrics of Indian startups across industries. Find out revenues, unit economics, profit & loss and all the important financial metrics to judge how the startup will perform in the coming years.
Auto classifieds startup CarTrade.com’s online vehicle auction platform CarTradeExchange has increased its EBITDA by 51% to INR 1.67 Cr in the financial year 2020, ending on March 31, 2020. The seller side business of Mumbai-based CarTrade saw 1.5x growth when compared to INR 1.10 Cr profit recorded in FY2019 last year.
The net profit for the company was INR 1.06 Cr in FY2020, representing a 32.5% increase from INR 80 Lakh in 2019. The platform has also managed to increase its revenue by 22% from INR 10.66 Cr to INR 13.08 Cr. A majority 98.32% or INR 12.86 Cr of the revenue came through operational income.
CarTradeExchange’s expenses has noted an uptick of 22% to INR 11.33 Cr in FY2020 from INR 10.66 Cr. This is CarTradeExchange’s third consecutive profitable year, with profits growing from INR 33 Lakh in FY2018 when it reported INR 1.1 Cr in revenue.
CarTradeExchange Spends 59% On Employee Benefits
Like 2019, 59% of the company’s total expenditure went into employee benefits. This is 21.8% higher than the INR 5.5 Cr it spent in FY 2019. According to the financial statement accessed by Inc42, the company paid INR 6.20 Cr as salaries and wages in FY2020. It also spent INR 33 Lakh as contribution to provident and other funds, and INR 6 Lakh on employee stock employee stock ownership plan (ESOP).
Besides this, the company’s finance cost and depreciation, depletion and amortisation expense accounted for INR 7 Lakh in spending. Other expenses such as rent, taxations, repair cost and more made up for nearly 40% of the expenses, accounting to INR 4.56 Cr.
This also included INR 3.49 Cr spent on cost technical services, INR 16 Lakh on legal professional charges, and INR 12 Lakh spent on advertising promotional expenses. Notably, INR 27 Lakh were counted as miscellaneous expenses under other expenses. This included auction expenses and expected credit loss.
Will CarTrade.com Follow Suit?
Like CarTradeExchange, the consumer side of the business CarTrade.com had turned profitable in FY18 with INR 4.6 Cr in profit and INR 59 Cr in revenue. In FY2019, the company had recorded a revenue of INR 40 Cr in FY2019 with a profit of INR 2.7 Cr. Notably, the auto classifieds business had a massive loss of INR 134 Cr in FY16 on a revenue of INR 43 Cr. The company’s financial statement for FY2020 is not available yet.
CarTrade is owned and operated by MXC Solutions Pvt Ltd, which was founded in 2011 by Vinay Sanghi. The company has raised $282.8 Mn till date from marquee investors like Canaan Partners, Tiger Global, Tata Group’s Ratan Tata and Warburg Pincus.
The company is said to be valued at INR 3,930.3 Cr ($525 Mn) after its INR 321.7 Cr Series H round in June 2020. It had also acquired a majority stake in Shriram Transport Finance Company Limited (STFC)-owned Shriram Automall India Limited (SAMIL) that has resulted in the combination of the two businesses. Notably, SAMIL is running CarTradeExchange as well.
Inc42 Plus has picked CarTrade.com as one of the soonicorns, companies that are expended to enter the unicorn club, in its Indian startup ecosystem report earlier this year. The report had also named other ecommerce platforms First Cry and Lenskart, which entered the unicorn club earlier this year.
Unicorn or not, the company is reportedly planning to go public by 2022, and has set aside INR 400 Cr-INR 450 Cr for acquisitions. Reportedly, the company’s CEO and founder Sanghi, in March 2020, said “There are some business gaps that we are looking at filling with a string of acquisitions in the vehicle servicing and insurance space.”
Media reports also added that CarTrade is seeking a non-banking finance company (NBFC) licence to enter the lending market.