SUMMARY
- Car marketplace CarDekho is reportedly in advanced discussions to bring in merchant bankers to lead its IPO.
- CarDekho could select bankers for its public issue as early as next week.
- The startup intends to submit its DRHP in March 2025, aiming to secure nearly $500 million.
Car marketplace CarDekho is reportedly in advanced discussions to bring in merchant bankers to lead its initial public offering (IPO) next year.
It’s expected that CarDekho could select bankers for its public issue as early as next week, according to Livemint, based on a source.
The startup intends to submit its draft red herring prospectus (DRHP) in March 2025, aiming to secure nearly $500 million (approximately Rs 4,100 crore) through a “primary component” at a valuation ranging from $2 billion to $2.5 billion.
The funds raised from the public offering are planned to be utilized for the expansion of CarDekho’s presence in different regions and categories, as well as for future acquisitions to broaden its range of services.
According to the report, the early investors in CarDekho, such as Peak XV, Google Capital, and Hillhouse Capital, are considering selling portions of their stakes through the offer for sale (OFS).
Established in 2008 by Amit Jain and Anurag Jain, CarDekho operates a mobile app-based platform for car listings, along with an insurance platform InsuranceDekho and a lending platform Rupyy.
To date, CarDekho has secured over $692 million in funding and competes with other platforms like CarTrade, Spinny, and Cars24. It was valued at $1.2 billion in 2021 following a $250 million funding round, which included both primary and secondary funding.
The potential valuation of $2 billion to $2.5 billion would represents increase from its last valuation.
However, this isn’t CarDekho’s first attempt at going public. In 2021, it was rumored to be considering a listing on the stock exchanges, but the plans did not come to fruition.
Earlier this year, CarDekho appointed Neelesh Talathi, a former executive from Mensa Brands and Pepperfry, as its group chief financial officer to lead the potential IPO.
In January, Amit Jain, the co-founder and CEO of CarDekho, was quoted as stating that CarTrade would aim for at least four to six quarters of profitability before listing on the stock exchanges. A source mentioned to Livemint that CarDekho is already operating at a profit at the group level.
CarDekho Group recorded an operating revenue of Rs 2,331 crore in FY23, marking a 1.5X increase from Rs 1,600 crore in FY22. However, its loss slightly increased to Rs 562 crore during this period from Rs 535 crore in FY22.
CarDekho’s plans for an IPO come at a time when numerous Indian startups are preparing to list on the stock exchanges. So far this year, around 10 new tech companies, including Go Digit, FirstCry, Ola Electric, Awfis, among others, have gone public.
