CarDekho owner Girnar software raises $3.6 M of debt funding from Trifecta
The current round of debt funding comes four months after the company raised Rs 16 crore of equity funding from Sequoia Capital in an internal round of financing
Jaipur-based Girnar Software, which runs auto classified portals CarDekho.com, Gaadi.com and Zigwheels.com raised $3.6 million (Rs 25 crore) in debt fund from Trifecta Venture Debt Fund-1, recent documents filed with the registrar of companies (RoC) revealed.
The current round of debt funding comes four months after the company raised Rs 16 crore of equity funding from Sequoia Capital in an internal round of financing.
CarDekho competes with players like CarTrade, Cars24, OLX, Quikr's auto vertical, and Droom. Of late, all its competitors have either been raising funds or beefing up their operations. Gurugram-based Cars24 raised $49.7 million from Sequoia Capital India, with the participation of some existing investors. CarTrade, this year, through MXC Solution Private Limited, picked up a majority 51 percent stake in Shriram Automall India Private Limited (SAMIL), a leading vehicle auctioning platform for used vehicles and equipment. Similarly, Droom also recently raised $30 million in a funding round that was led by the world’s largest automaker Toyota Motor Corp.
CarDekho saw its revenues grow by 32 percent to Rs 127.7 crore in FY17, up from Rs 96.4 crore in FY16. But the company slightly narrowed its loss in FY17 to Rs 135 crore from Rs 144 crore in FY16.
Girnar Software operates several websites focusing on automobile classifieds. It also runs a classified portal, CarBay, in Indonesia. Last year, the company procured Insurance Regulatory and Development Authority (IRDA) licence to launch the auto insurance vertical under Girnar Insurance Brokers Pvt Ltd. With this, the company started to provide hassle-free insurance buying, locating cashless services garages, claim settlement and documentation to car owners. It also offers auto loans through tie-ups with banks and conducts pre-inspection of used cars listed on its platform.
Girnar Software acquired three companies in the automobile segment in 2016. In total, it has acquired five companies since it began its operations in 2007. Its last acquisition was Volob Technology (a virtual reality startup) that it bought in May 2016 in an all-cash deal.