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

CarDekho, an Indian search platform and e-commerce platform that sells new and used cars in India, is now the second largest startup to achieve the status of a unicorn.
The 14-year old startup announced Wednesday that it had raised $250 million and $200 million equity, as well as $50 million debt in Series E financing. LeapFrog Investments led the round which valued Jaipur-based firm at $1.2Billion.

Canyon Partners, Mirae Asset and Franklin Templeton participated as well as existing investors Sequoia Capital India, Sunley House, and Sequoia Capital India in the pre-IPO round.

CarDekho was one of the first Indian startups. It has now expanded to more than 100 countries. CarDekho buys vehicles from customers and sells them to customers. It also offers an online catalog of over 3,000 pre-owned certified cars.

CarDekho offers financial services to customers, allowing them to pay in installments or provide insurance coverage for cars that they buy through the platform. The startup claims its financial services business is profitable and that insurance has hit the breakeven point. The startup claims it has partnered with more than a dozen financial institutions in order to offer loans to customers, and more than three dozen insurance companies.

It is associated with nearly all Indian automobile manufacturers and contributes 30% to their annual sales. It works with more than 3,500 auto dealers and more than 4,000 used car traders, traders, and entrepreneurs. According to the company, the firm has exceeded $100 million in revenue in the past month.

According to Bernstein analysts, auto e-commerce has a low global penetration. India and the U.S. have a 1% penetration. The reason is that the auto market requires physical inspections, and the target market is heavily skewed towards used cars. India's total market is approximately $220 billion. This includes the used vehicle market as well as remarketing and auctions, financing, advertisements, and growth potential for new vehicles. They wrote earlier this year that the US used car market is worth more than $800 billion.

CarDekho began as a portal for car research. It has since evolved into a comprehensive ecosystem for car buying and lifecycle management, according to Amit Jain (co-founder and chief executive at CarDekho). We want to empower our customers and make it easy and stress-free for them.

He stated that the startup would use the new capital to expand its used vehicle and financial services business. We will be able to accelerate our growth plans with the trust and conviction of our investors. Our customers will enjoy a car buying and selling experience that is unmatched.

It stated that the startup plans to increase its inventory to more than 10,000 vehicles in the near future.

Wednesday's announcement added CarDekho to the list of almost three dozen Indian startups that have achieved this coveted status. In recent quarters, several high-profile investors have increased their investment in India, including Sequoia SoftBank, Falcon Edge Capital, Falcon Edge Capital, Temasek and Sequoia. For context, India currently has approximately 50 unicorns.