Girnar Software-owned automobile portal CarDekho is looking to raise funds from the market through an IPO in the next 18 months.
The company’s board is discussing plans to list the portal on the domestic bourses through an initial public offering (IPO), Amit Jain, co-founder and chief executive at CarDekho, told Mint.
CarTrade Tech Ltd, a portal for new and used cars, was listed on the Indian stock exchange in August.
CarDekho joins an impressive line-up of unicorns that are waiting to list on the Indian bourses, buoyed by the success of food delivery company Zomato’s listing. A unicorn is a start-up with a valuation of over $1 billion. CarDekho recently joined the unicorn club.
The automobile portal, which sells used cars, raised $250 million this week, taking its valuation to $1.2 billion, according to LeapFrog. The fund, raised in a mix of equity and debt, is part of the start-up’s pre-IPO round of cash injection.
“We will now begin the processes and compliance from a regulatory perspective for the IPO,” Jain told Mint in an interview on Wednesday, adding that the markets were always favourable to a good company.
CarDekho will use the $250 million fresh capital to increase its presence to 12 cities, including smaller towns and cities, by March. At present, CarDekho procures used cars from more than 100 cities and sells them in six cities in India.
“Tier-2 and 3 are key markets and a lot of growth is coming from these markets, especially for the used-car space. In the next 2-3 years, we will see almost 50 per cent of our sales coming from tier-2 and 3 cities," Jain said.
Apart from buying and selling used cars, CarDekho also retails new cars and provides financing and insurance services.
Girnar Software witnessed a 50 per cent surge in revenues in the year that ended March 31, 2020 at Rs 240 crore over Rs 159.8 crore in fiscal 2019, Mint reported. It also brought down its losses 7 per cent to about Rs 82 crore in the same fiscal. The company sells cars in India, Malaysia, Indonesia and the Philippines.
The company is now looking to get a non-banking financial company (NBFC) licence so that it can give instant loans to car buyers.
(Edited by : Anilkumar Narayan)