Girnar Software Pvt. Ltd, which runs automobile marketplace CarDekho, scaled its operations past Rs 2,000 crore in the last financial year (FY), despite shutting down its used-car business and consumer-to-dealer businesses.
The Jaipur-based company grew its revenue from operations by nearly 46% to Rs 2,331 crore on a consolidated basis in FY23. To be sure, this includes the sales from its subsidiaries including its insuretech unit InsuranceDekho, lending platform Rupyy and its international operations. Last year, it had reported 81% growth in its operating income to Rs 1,597.5 crore.
Further, the company widened its consolidated net loss by 5%, ending the year at about Rs 562 crore in the red. For comparison, in FY22, the company had reported Rs 535 crore in net loss. However, after accounting for gain from exceptional items last year, its adjusted losses were in the range of Rs 246 crore in FY22.
“We've placed strong emphasis on our strategic use of operational leverage and to enhance unit economics and efficient capital allocation across our diverse business segments,” said Mayank Gupta, group chief financial officer, CarDekho.
The company said it has turned PAT/net Income positive in the second quarter of FY24, owing to its focus on improving unit economics. Last year, in an interaction, co-founder and chief executive Amit Jain said CarDekho was eyeing to achieve break-even at a group level in FY24.
Founded in 2008 by siblings Amit and Anurag Jain, CarDekho started as a car discovery platform for both new and old four-wheelers. It ventured into the pre-owned car retail market under the ‘Gaadi’ brand name in 2019, and more recently launched its lending vertical Rupyy.
It entered the coveted unicorn club in October 2021 after raising $250 million as a part of its latest Series E round, led by private investment firm LeapFrog Investments, along with participation from South Korea’s Mirae Asset Group and existing investors.
While its revenue has been on an upward trajectory, CarDekho has in fact been scaling down its asset-heavy used-car marketplace to pursue an auction model.
However, the company has scaled down its asset-heavy used car marketplace to pursue an auction model. It closed many retail stores in India last year due to thin margins in the used marketplace business. The company operates in Singapore, Indonesia, Malaysia and the Philippines under the brands OTO.com and Zigwheels.
"The group has enhanced its focus on providing financing and insurance solution across its ecosystem,” said Amit Jain, Co-founder and CEO of CarDekho Group.