Online car search platform CarDekho has raised $2.5 million from an existing investor Sequoia Capital in an extended Series B round of funding, according to RoC filings.
The company allotted 2,390 Series B5 preference shares of Rs 10 at a premium of Rs 67992.72 each on March 12, 2018.
CarDekho last raised a $15-million funding, in a round led by Google Capital and existing investors in early 2016.
It has raised a total funding of $75 million from various investors, including Ratan Tata, Times Internet, HDFC Bank, Hillhouse Capital, Tybourne Capital, and leading Japanese advertising company, Dentsu Inc.
Founded by Amit Jain and Anurag Jain, CarDekho is one of the leading players in the space. In FY 2016, it reported revenue of $10 million against total expenses of $26 million.
There was a time when the auto classified platforms were the most sought-after segment. In 2016, another behemoth CarTrade raised a massive funding of $145 million. In 2017, it raised $55 million from Singapore-based investment firm Temasek.
Last year, the online marketplace for used automobiles and auto services Droom raised $20 million in a Series C round led by Integrated Asset Management and Digital Garage.
Experts believe used car segment has an enormous opportunity and can accommodate multiple players as over 80 percent of the overall market is unorganised. Besides sizeable opportunity, the market is growing rapidly (more than 25 per cent on a yearly basis), so there is enough room for many players.
By end of 2022, Indian used car market would have a size of about $60 billion. Jaipur-based company eyes to have 5 per cent of it in a long haul.
Early this month, OLX, an online classifieds marketplace, claimed to registered a 50 per cent growth in the number of buyers in the pre-owned cars category during last fiscal. It also claimed the company’s seller base in that category also underwent a 100 per cent increase.
The development was first reported by Paper.vc.