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India’s CarDekho becomes unicorn with $250 million fundraise – FiratNews

India’s CarDekho becomes unicorn with $250 million fundraise – TechCrunch

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CarDekho, an Indian search and e-commerce platform for brand spanking new and used automobiles, has grow to be the newest startup on the earth’s second-largest market to achieve the unicorn standing.

The 14-year-old startup stated on Wednesday it has raised $250 million — $200 million in fairness and $50 million in debt — in its Sequence E financing spherical. The spherical, which valued the Jaipur-headquartered agency at $1.2 billion, was led by LeapFrog Investments.

Canyon Companions, Mirae Asset, Franklin Templeton, Harbor Spring Capital in addition to present buyers Sequoia Capital India and Sunley Home additionally participated in what CarDekho has described as its pre-IPO spherical.

One of many earliest startups in India, CarDekho has expanded to over 100 markets, it says. The startup, which buys automobiles from prospects after which sells them, presents a list of greater than 3,000 licensed pre-owned automobiles for on-line buy.

CarDekho additionally supplies prospects with monetary companies — the power to pay in installments — and insurance coverage protection on automobiles they buy from the platform. It stated its monetary companies enterprise is already worthwhile, whereas that of insurance coverage has reached the “breakeven” level. (The startup says it really works with over a dozen monetary establishments to supply loans to prospects and over three dozen insurance coverage corporations.)

It really works with nearly all car makers in India, and contributes 30% of their annual gross sales. It additionally works with over 3,500 new auto sellers and over 4,000 used automotive sellers, merchants and entrepreneurs. It stated the agency exceeded $100 million income run-rate within the final month.

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Penetration of e-commerce in vehicles is low in comparison with different classes. Information and Picture: Bernstein

Auto e-commerce typically has low penetration globally, with India and U.S., for instance, having a 1% penetration, in accordance with analysts at Bernstein. “That is largely as a result of the auto market nonetheless requires bodily inspections and the goal market skews in direction of used autos — an unorganized market. The whole addressable market in India is round $220 billion, which incorporates used automobile buy by customers, auctions and remarketing, progress potential for the brand new autos market, and financing and commercials. The whole addressable marketplace for solely the used automotive market in US is over $800 billion,” they wrote in a report earlier this 12 months.

“CarDekho, from being a automotive analysis portal, has advanced to grow to be an entire ecosystem for automotive shopping for, lifecycle administration and promoting,” stated Amit Jain, co-founder and chief government of CarDekho. “We’re dedicated to empowering our prospects and offering them with a handy and hassle-free expertise.”

He stated the startup will deploy the contemporary capital to increase its used automotive and monetary companies companies. “The belief and conviction of our buyers will assist us to speed up our progress plans while we offer our prospects with an expertise that may proceed to redefine automotive shopping for and promoting.”

The startup can also be working to increase its catalog to over 10,000 automobiles within the “close to future,” it stated.

Wednesday’s announcement provides CarDekho to a listing of practically three dozen different Indian startups which have earned that coveted standing this 12 months. A number of high-profile buyers, together with Tiger International, Sequoia, SoftBank, Falcon Edge Capital and Temasek, have elevated the tempo of their investments in India in latest quarters. (For some context, India has about 50 unicorns now.)

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