Peak XV, Google, Hillhouse Eye Part exit as CarDekho plans IPO

Two people with direct knowledge of the matter told CarDekho that an IPO filing is expected in March and that other early investors may also profit from its public stock offering. Mint.

“The company plans to raise approximately $500 million, with the major portion valued at $2-2.5 billion,” one of the people said. The net proceeds from the public offering will be used to fund CarDekho’s geographic and category expansion, as well as future investments. acquisition to expand its service portfolio. “

Google, Peak XV and Hillhouse have been on CarDekho’s capitalization table for about a decade. “The investment firms will sell some of their shares under the offer-for-sale option,” the second person said, adding that CarDekho was in advanced discussions to appoint bankers for the IPO, possibly as early as next week.

CarDekho declined to comment. Google Capital said it would not comment on what it called “speculation.” Peak XV (formerly Sequoia India) said it had no comment, while Hillhouse Capital did not immediately respond.Mint Send inquiries via email.

After a tepid 2022 and 2023, startup IPOs are making a comeback this year. As of 2024, 10 startups have gone public, including FirstCry, Ola Electric, Go Digit, Awfis and ixigo, riding the momentum of the stock market bull run. The upcoming IPO of food and grocery delivery platform Swiggy and the listing of electric scooter maker Ather Energy are among the next most anticipated public equity offerings.

Also Read | Startup Initial Public Offerings (IPOs) are making a comeback. Beware of optical illusions

Go forward courageously

Earlier this year, CarDekho was in talks to raise $100-150 million in a second round of funding, in which early investors sell all or part of their stake in a company to other investors at a slightly higher valuation of $1.3 billion .Mint Exclusive report in March.

This is slightly higher than CarDekho’s last valuation of $1.2 billion in October 2021, when the company raised $250 million in primary and secondary funding. In the round, investors led by Leapfrog Investments invested in the company along with Canyon Partners, Mirae Asset, Harbor Spring Capital and existing investors Sequoia Capital India and Sunley House.

CarDekho, owned by Girnar Software, has been aggressively pursuing an IPO in recent months, with a focus on boosting profits and revenue. In May, the company appointed Neelesh Talathi, former finance chief of Pepperfry, Mensa Brands and Vedanta Group, as group chief financial officer.

According to media reports in January, co-founder and CEO Amit Jain said that the company aims to be profitable for at least 4-6 quarters before entering the public market.

CarDekho is already profitable at the group level, one of the people cited above said.

CarDekho’s consolidated revenue increased to $2,331 Crore in 2022-23 $The previous year’s net loss was Rs 1,600 crore, but the net loss widened to $562 Crores Rs. $535 crores. The company is expected to submit the results of the audit later today.

Founded in 2008 by siblings Amit Jain and Anurag Jain, CarDekho initially sold used cars on its platform and later moved into financing tools. The company is reducing its car resale business, which competes with CarTrade, Spinny and Cars24, to close to zero in 2023-24.

CarDekho has invested $100 million in its fintech subsidiary Rupyy to expand its non-bank lending business. The group also founded insurance business InsuranceDekho and is actively looking for acquisition opportunities to strengthen its product portfolio.

In December last year, CarDekho acquired ride-sharing startup Revv for an undisclosed amount.