Girnar Soft-run CarDekho has secured a $15-million funding, in a round led by Google Capital and existing investors, sources in direct knowledge of the deal told YourStory. This deal comes within a month of the massive $145-million round garnered by CarTrade, confirming that online automobile classifieds majors have no issues raising institutional funding, even while other sectors experienced a funding crunch.
The sources said that the deal would be made public later this month. Sources added,
Besides Google Capital, some existing investors but not all, including Hillhouse Capital, also participated in the round.
CarDekho Founders declined to confirm or comment on the deal. The capital raised will be deployed in expansion within and outside India, sources claimed. “CarDekho will also make its debut in a few countries in the APAC region,” they added.
CarDekho claims to dominate 25 percent volume of the new as well as used-car segments. In January 2015, it secured a $50-million funding, in a round led by Chinese funds Hillhouse Capital and Tybourne Capital, after which its valuation stood at about $300 million.
CarDekho’s competition Cartrade had snapped up a massive $145 million from Temasek, March Capital and from existing investor Warburg Pincus last month. Last year, online automobile classifieds had consolidated to a great extent and the battle for the automobile classifieds crown was primarily waged between CarDekho and CarTrade.
CarDekho acquired Times Internet-owned Zigwheels last year and Gaadi from Ibobo in the second half of 2014. Cartrade acquired CarWale, after buying Axel Springer’s 91-percent holding.
Horizontal classifieds are not moving with much speed, while verticals like automobile, real estate and jobs continue to grow in a healthy pace. Automobile emerged as a significant bet for venture capitalists and, in recent times, blue-chip investors like Google Capital, Hill House, Temasek and Warburg Pincus. Horizontal classifieds major Quikr increased its focus on automobiles vertical and launched Quikr Cars last year.
Consolidation over the last couple of years by CarDekho and CarTrade helped the companies weed out competition and curb burn rate. This helped both companies have healthy and sensible competition.