MUMBAI: CarDekho.com has closed its second round of funding and has raised $50 million. The funding was led by Hillhouse Capital with participation from Tybourne Capital and Sequoia Capital.
The single transaction funding was concluded early this week. Elara Capital acted as the exclusive financial advisor to the transaction. With this the parent company Girnar Software is now valued at $300 million.
Sharing plans about this venture GirnarSoft CEO and co-founder Amit Jain believes that together CarDekho.com and Gaadi.com are by far the largest players in online auto classifieds space by revenue and traffic in the country. Jain’s vision is to be company with global footprint through its innovative products and services.
“This is the largest quantum of fund raise in this segment in India so far. We see the second round of investment as an endorsement of our strategy and progress so far. Our revenues have grown three-fold since 2013 when we received our first round of funding from Sequoia, and we are doubling our lead generation Y-O-Y. This is the time we are looking to rapidly expand our business and therefore the funding adds to our fast paced growth in the online auto portal segment,” added Jain.
Jain feels that this is a very exciting time for the company and a high point in the Indian automobile industry.
“With this funding we have plans to enhance the technology and services of CarDekho.com along with increased focus on brand building and marketing initiatives of the company. As the #1 auto portal of the country, it is also our responsibility to develop the category by providing the best offerings to consumers, best services for dealers and top notch support to OEM manufacturers,” said Jain.
Commenting on the investment, partner of Hillhouse Capital David Rhee stated that it observes a tremendous growth opportunities in the online automobile classified market in India. “CarDekho, as the clear leading player in this space, is the best positioned to take advantage of this market. We are in the early stages of the development of the auto industry and its transition to online. We are excited to be partnering with such an exceptional management team to continue to build and grow this business over the long term,” Rhee said.
Tybourne Capital portfolio manager Eashwar Krishnan added, “We have a substantial amount of capital invested across global classified assets and are excited to add CarDekho to our portfolio. We view CarDekho as a direct comparable to Autohome in China (another Tybourne investment), and as the leader in the space, we expect CarDekho to capture a substantial portion of the auto classifieds market in India. We look forward to partnering with the management team as the company moves into its next phase of growth.”
Sequoia Capital partner Shailesh Lakhani said, “CarDekho has redefined the purchase experience for car buyers in India. Led by Amit and Anurag, the company has assembled one of the best internet teams in India. We are excited to welcome Hillhouse and Tybourne as new investors to CarDekho and their support as we continue the journey to building a large internet auto company.”
