CarDekho that recently scooped $75 million Series C round has demonstrated improved financials in FY18. The Jaipur-headquartered firm reduced losses to half to Rs 70 crore in FY18 from Rs 135 crore in the preceding fiscal.
The company’s revenue also jumped to 40 per cent in FY18. While CarDekho had a revenue of Rs 114 crore in FY17, it increased to Rs 160 crore in the last financial year ending March 2018.
According to the company, the growth in revenue largely steered by its full stack offerings in used car vertical. Besides offering choices of used four wheels, it also covers financing and insurance requirements.
CarDekho claims to have reached to about 60 per cent of overall used car dealers. Currently, about 450 dealers have been offering financing service while 800 dealers sell insurance products.
During FY18, CarDekho financing vertical had witnessed a 5X surge in loan disbursal. It processed Rs 1000 crore disbursement in FY18 while this figure stood at a mere Rs 200 crore in the financial year 2016-17. On the insurance front, the company claims to sell about 6,000 policies every month.
Last week, Entrackr has exclusively reported that the firm has tentatively closed $75 million in Series C round from new as well as existing investors. The financing round is still open and it may scoop $100 million more.
With this $75 million round, CarDekho has raked in about $175 million total risk capital. Previously, it raised $15 million round led by Google Capital and existing investors in early 2016. In December 2014, it scooped up $50 million Series B round led by Chinese investor Hillhouse Capital.
Cardekho competes with CarTrade, Quikr, OLX and new players including Spinny and Truebil.
Interestingly, Sequoia Capital had recently led a $50 million round in Cars24. Several observers and experts believed that Sequoia has changed side by backing the Gurugram-based firm. Although, its investment in Cars24 is different from CarDekho.
CarDekho follows classifieds (for users) and lead generation (OEMs and dealers) models while Cars24 buys used cars from owners on behalf of dealers.
The development was reported by ET.