AAA CarDekho turns unicorn with $250m round

CarDekho turns unicorn with $250m round

CarDekho, an India-based online automotive marketplace backed by several corporates, has collected $200m in series E equity funding and $50m in debt financing at a $1.2bn valuation, the Economic Times reported today.

The round was led by LeapFrog Investments and backed by financial services provider Mirae Asset as well as Canyon Partners, Franklin Templeton, Harbor Spring Capital, Sequoia Capital India and Sunley House, while Numis and Credit Suisse advised CarDekho.

Founded in 2008, CarDekho provides an online marketplace where customers can sell, buy, review and compare cars. It also offers an online insurance platform called InsuranceDekho.com and an auction service for second-hand vehicles.

The company intends to use the capital to accelerate its growth in the used car retail, financial services and insurance sectors, build robust product and technology features, increase brand awareness and expand into new markets.

CarDekho raised $70m in a December 2019 series D round led by insurance group Ping An’s Global Voyager Fund at a $700m post-money valuation. Sequoia Capital and Hillhouse Capital also contributed to the round.

The company had secured $129m in series C funding in August 2019 after adding $19m in an extension led by India Mobility Holdings and backed by Hillhouse Capital and Kreatif Media Karya, a subsidiary of media group Emtek.

The round included a $75m first tranche provided by digital marketing firm Dentsu, media group Bennett, Coleman & Co, financial services firm HDFC Bank and Tybourne Capital in October 2018.

CarDekho subsequently secured additional financing to grow the round to $110m in January, with backing from internet and technology group Alphabet’s CapitalG unit, financial services firm Axis Bank, Sequoia Capital, Aquila Capital, Hillhouse Capital and RNT Associates.

The company had collected $15m in a round led by CapitalG in 2016, that also featured Hillhouse, after HDFC had invested an undisclosed amount in May 2015. That came four months after Hillhouse, Tybourne, Ratan Tata and Sequoia had deployed $50m in funding at a $300m valuation, following $15m from Sequoia in 2013.