ZigWheels PH, Carmudi PH Indian parent co. CarDekho now valued at US$1.2-B after fresh funding

MANILA: India’s largest car search platform CarDekho has breached the US$1 billion mark after fresh funding — making it a unicorn company.

After receiving US$250 million in funding. CarDekho is now valued at US$1.2 billion. ZIGWHEELS PHILIPPINES and Carmudi Philippines are members of the CarDekho Group, which acquired Carmudi in 2019 as part of its expansion in Southeast Asia. It also opened the ZigWheels Philippines portal in the same year.

"Ultimately, this validates the business models we are implementing here, and are yet to implement. People can definitely look forward to them," said Carbay Philippines Chief Executive Officer Cholo Syquia. The company operates the two automotive portals here.

"Now, not only do we deliver proven results; we belong to a unicorn organization. We do not take this lightly," continued Syquia.

CarDekho's recent round of additional funding included US$200 million Series E equity and US$50 million debt in its pre IPO round. With the latest fundraising, CarDekho joins the unicorn club and becomes the first unicorn based in Jaipur, Rajasthan.

The Philippines is the second Southeast Asian country where the CarDekho Group commenced operations. In 2016, the company activated its Indonesia operations under OTO.com, which has reportedly become the number-one auto portal in the said country.

“The backing of CarDekho, a leading full-stack auto tech company, will help us in further strengthening our position in this region. This means added enhancements in technology, processes, and platform resulting in great user experience," Syquia had said following the acquisition in 2019. 

Aside from expanding into new markets, CarDekho will use the  proceeds to accelerate CarDekho’s growth in used car transactions, financial services, insurance businesses, build robust product and technology functions, and increase brand awareness. 

The funding round was led by LeapFrog Investments, a global impact investor focused on financial services and healthcare access. Other new investors included US-based Canyon Partners, Mirae Asset, and Harbor Spring Capital.

CarDekho’s existing investors Sequoia Capital India and Sunley House invested further, reaffirming their confidence in the company. Sequoia Capital India was one of the early investors in CarDekho having led the Series A round in 2013 and Series C round in 2018.

"We are committed to empowering our customers and providing them with a convenient and hassle-free experience. The new fundraise will help us expand our used car transactions and financial services businesses,"  CarDekho co-founder and CEO Amit Jain said in a release. 

"The trust and conviction of our investors will help us to accelerate our growth plans whilst we provide our customers with an experience that will continue to redefine car buying and selling," he added. 

Like ZIGWHEELS PHILIPPINES and Carmudi Philippines, CarDekho in India works actively with new auto dealers (around 3,500) and used car dealers (4,000 ), homegrown traders, and entrepreneurs to give consumers access to new and used cars.

CarDekho Group exceeded US$100 million in the revenue run-rate in September 2021 with strong performance across business segments.

Photos from CarDekho

Also read: Toyota Rush tops list of most-searched models on ZigWheels PH