CarDekho Is Eyeing An IPO Next Year; Aims to Raise INR 4100 Cr

CarDekho, an online marketplace for cars, is supposedly in advanced talks to choose merchant bankers for its planned IPO, which is expected to take place early next year. A media report stated that CarDekho might decide on the bankers' appointment for the public issue as early as next week.

The business wants to fund close to $500 million, or roughly INR 4,100 crore and intends to file its draft red herring prospectus (DRHP) in March 2025. A key component of the IPO is anticipated, with a valuation goal of $2 billion to $2.5 billion.

Expansion Plans

The net revenues from the IPO will be put towards CarDekho's planned acquisitions to broaden its service offering, as well as its further geographic and category expansion. A portion of the holdings held by early investors, such as Peak XV, Google Capital, and Hillhouse Capital, will be sold during the offer for sale (OFS) portion of the IPO.

With an estimated worth of $2 billion to $2.5 billion, the IPO would almost double its prior valuation. CarDekho has contemplated going public before; in 2021, the business discussed an IPO, but it never happened.

In order to oversee the prospective IPO, CarDekho earlier this year named Neelesh Talathi, a former executive of Mensa Brands and Pepperfry, as its group chief financial officer. CEO and co-founder Amit Jain stated in January that CarDekho planned to become profitable for a minimum of four to six quarters prior to going public.

Financial Status

Amit Jain and Anurag Jain launched CarDekho, an app-based vehicle listing platform, in 2008. The business also manages the financing website Rupyy and the insurance platform InsuranceDekho. CarDekho, which competes with CarTrade, Spinny, and Cars24, has raised more than $692 million in funding to date. The business raised $250 million in a combination of primary and secondary capital in 2021, when its valuation was last estimated at $1.2 billion.

For the fiscal year 2022-2023 (FY23), CarDekho Group recorded operating revenue of INR 2,331 crore, increasing 1.5 times from INR 1,600 crore in the prior fiscal year. Nonetheless, losses in FY22 rose slightly to INR 562 crore from INR 535 crore.

The announcement of CarDekho's IPO intentions coincides with an increase of Indian firms looking to go public. Up to ten new-age digital businesses have gone public this year, including FirstCry, Go Digit, Ola Electric, and Awfis.

CarDekho Success Story - How It Finds the Right Cars for the Users?

CarDekho founded by Amit and Anurag in 2008, is a car search venture that helps users buy the right cars. Read about CarDekho net worth, founders, competitors, business & revenue model, funding, etc.

StartupTalkyRishabh Rathi