India’s Regulatory Reforms : A game changer...
10 Oct 2024
Auto marketplace CarDekho is reportedly in advanced discussions to appoint merchant bankers for its initial public offering (IPO) slated for next year. According to sources, CarDekho could finalize the appointment of bankers for the public issue as early as next week, Livemint reported.
The startup plans to file its draft red herring prospectus (DRHP) in March 2025, aiming to raise nearly $500 million (about INR 4,100 crore). The IPO is expected to include a primary component, targeting a valuation between $2 billion and $2.5 billion.
“The net proceeds from the public offering will be used to fund CarDekho's geographical and category expansion, as well as for future acquisitions to expand its service portfolio,” a source familiar with the matter was quoted as saying.
Early investors, including Peak XV, Google Capital, and Hillhouse Capital, plan to offload a portion of their stakes through the offer for sale (OFS) component of the IPO. Inc42 has reached out to CarDekho for a comment on the development and will update the story upon receiving a response.
Founded in 2008 by Amit Jain and Anurag Jain, CarDekho operates an app-based car listing platform. The company also runs the insurance platform InsuranceDekho and the lending platform Rupyy. To date, CarDekho has raised more than $692 million in funding and competes with CarTrade, Spinny, and Cars24. The company was last valued at $1.2 billion in 2021 after raising $250 million through a mix of primary and secondary funding.
The anticipated valuation of $2 billion to $2.5 billion for the IPO would nearly double its previous valuation. This is not the first time CarDekho has considered going public; the company previously mulled an IPO in 2021, which did not materialize.
Earlier this year, CarDekho appointed Neelesh Talathi, a former executive at Mensa Brands and Pepperfry, as its group chief financial officer to lead the potential IPO. In January, co-founder and CEO Amit Jain mentioned that CarDekho would aim for at least four to six quarters of profitability before listing. According to a source quoted by Livemint, CarDekho is already "profitable at the group level."
CarDekho Group reported an operating revenue of INR 2,331 crore for the fiscal year 2022-23 (FY23), up 1.5 times from INR 1,600 crore in the previous fiscal year. However, losses increased marginally to INR 562 crore from INR 535 crore in FY22.
CarDekho's IPO plans emerge at a time when Indian startups are increasingly seeking public listings. This year, as many as 10 new-age tech companies, including Go Digit, FirstCry, Ola Electric, and Awfis, have gone public.
Chat on WhatsApp
Request a call back
