Sequoia Capital, which has already invested in CarDekho, is also prepared to invest in the company again.
CarDekho has been looking for a new investor even though the auto market within India is seeing a slowdown. Wholesale numbers of passenger cars have dropped 23.7% in just a year, nearly an entire year's worth of declining numbers. Despite these slumping numbers, car sales through online marketplaces are improving thanks to both new and used vehicle sales.
“Demand for new cars, online at least, is quite strong for us right now, and the entry of new players is making the industry far better and more organized,” CarDekho’s Co-Founder and Chief Executive Officer, Amit Jain said.
Since the company was founded in 2008 by Amit and Anurag Jain, it has managed to fundraise around $185 million from several companies including Sequioa India, Alphabet, and Axis Bank. Currently, the company is valued at around $400-500 million.
In their last year-long financial report, the company reported a 60% rise in revenue, however, it didn't reveal any potential profit or loss numbers. In previous years the company had reported a loss of around $10.5 million with a revenue of $24 million.
CarDekho isn't the only auto retail platform garnering interest from investors. Spinny is currently preparing to raise around $35 million in its next funding round primarily from Fundamentum, Accel Partners, Blume Ventures, and SAIF Partners.
Cars24, a used car marketplace for dealers, is in the process of raising capital in their Series D funding round. The company has previously raised $52 million from KCK FZE, a cargo company, and Kingsway FCI. Sequoia has also invested in Cars24.
Investors within these markets are seeing a shift in consumer trends toward used cars from these retail platforms.
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