CarDekho: Finding the Right Cars for Users
Company Profile
Authors: Rishabh Rathi, Manisha Mishra
Published: Dec 21, 2023 | Read Time: 14 min
Overview
CarDekho, founded by Amit Jain and Anurag Jain in 2008, is a leading online automotive platform that simplifies the car-buying process for users. The platform helps users find suitable new and used cars effortlessly, offering a comprehensive solution for purchasing vehicles.
Company Highlights
- Name: CarDekho
- Headquarters: Jaipur, Rajasthan, India
- Sector: Automotive, E-commerce
- Founders: Amit Jain, Anurag Jain, Umang Kumar
- Founded: 2008
- Website: cardekho.com
About CarDekho
CarDekho, developed by GirnarSoft, is an extensive online resource for automotive information. The platform provides detailed car reviews, specifications, pricing, comparisons, and multimedia content on a wide range of vehicles available in India. It also offers insights into industry trends, new launches, and other relevant automotive news.
How It Works
CarDekho offers a comprehensive experience for car buyers, acting as a virtual auto dealer. Users can explore various car categories, upcoming models, and new releases. The platform includes an online store with a variety of automotive accessories and provides options for car loans and refinancing. CarDekho also hosts an automotive forum where industry experts address user queries, fostering community engagement.
Industry
India’s automotive market is booming, with expectations to grow from USD 100 billion in 2021 to USD 160 billion by 2027. India is a major global player in car production, known for its low production costs due to affordable labor and raw materials.
Founders and Team
- Amit Jain (Co-founder & CEO): An IIT Delhi alumnus, Amit Jain previously worked at Tata Consultancy Services and Trilogy before co-founding GirnarSoft and CarDekho.
- Anurag Jain (Co-founder & COO): Also an IIT Delhi graduate, Anurag Jain’s background includes roles at i2 Technologies and Sabre Holdings.
- Umang Kumar (Co-founder & President): Formerly the co-founder of Gaadi.com, Umang Kumar brings experience from companies like Accentium Web and ABP.
Startup Story
Inspired by the Delhi Auto Expo in January 2008, Amit and Anurag Jain launched CarDekho in March 2008 from their garage. Their persistence and early efforts paved the way for significant growth, eventually valuing the company at $1.2 billion.
Startup Launch
Post-launch, CarDekho continued its IT consultancy services to sustain income. The company grew steadily, expanding its offerings and gaining significant traction in the automotive market.
USP and Innovation
CarDekho’s standout feature is the “Feel The Car” tool, which provides a 360-degree view of cars’ interiors and exteriors, complete with authentic sounds and feature explanations. The platform also offers search and comparison tools and live offers across cities. For manufacturers and dealers, CarDekho provides lead management, digital marketing, and virtual showrooms.
Mission and Vision
CarDekho aims to create a holistic ecosystem connecting automakers, dealers, and consumers, simplifying the car-buying and ownership experience. This includes handling purchases, accessories, tires, batteries, insurance, and roadside assistance.
Name, Logo, and Tagline
The name “CarDekho” reflects its mission to help users browse and learn about cars. The tagline, “Bharosa Kar Ke Dekho,” translates to “Trust and See,” emphasizing reliability and user confidence.
Business Model
CarDekho functions as an online marketplace connecting buyers and sellers. It offers a wealth of information and an e-commerce platform for a seamless car-buying experience.
Revenue Model
CarDekho’s revenue streams include:
- Advertising: Revenue from sponsored content and ads on its platform.
- Lead Generation: Fees for connecting dealerships with potential customers.
- Subscription Model: “CarDekho Plus” offers premium benefits for a fee.
- Affiliate Marketing: Commissions from promoting third-party products and services.
Employees
In February 2020, CarDekho facilitated a secondary sale for employees, valuing the transaction at approximately $3.5 million. This was part of the company’s ESOP program.
Challenges Faced
CarDekho initially struggled with market awareness and competition but overcame these hurdles through strategic marketing, entering new car markets, and becoming a leader in online automobile sales.
Funding and Investors
CarDekho has raised $497.5 million across nine funding rounds from investors including Google Capital, Tybourne Capital, Hillhouse Capital, Sequoia Capital, and HDFC Bank.
Mergers and Acquisitions
- Revv (Dec 1, 2023)
- Carmudi Philippines (Nov 28, 2019)
- Gaadi Web (Sep 30, 2014) – $11 million
Growth
CarDekho has seen substantial growth, expanding its services, launching new portals, and collaborating with numerous dealers and financial institutions. It has also adapted its strategy post-COVID-19, focusing on home inspections and streamlining its operations.
Rupyy
CarDekho recently launched Rupyy, a digital platform for auto-financing, using a QR code-based process to simplify loan applications and approvals.
Financials
- FY20: Operating Revenue: ₹706 crore | Loss: ₹326 crore
- FY21: Operating Revenue: ₹884 crore | Loss: ₹343 crore
- FY22: Operating Revenue: ₹1,597 crore | Loss: ₹535 crore
CarDekho’s expenses have increased significantly, with a notable rise in advertising, employee benefits, and material costs.