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CarDekho, India’s leading and most popular auto-tech solution provider has recorded exponential growth of 46% in revenue in the year FY23.
The company has been able to maintain a strong growth trajectory due to its growth engines like InsuranceDekho, Rupyy, and its Southeast Asia Business.
Last year, CarDekho group discontinued its used car franchise retail and Consumer to Dealer businesses due to inviable unit economics and the strategic decision of prudent capital allocation moving towards an asset-light business model.
The company has controlled the losses despite maintaining a steady growth whereby it recorded a loss of Rs 562 crores in FY23 against Rs 535 crores in FY 22 (Without adjustment of accounting gain of Rs 290 crores of exceptional one-time MTM gain of investments in associates if adjusted the reported losses were Rs 246 crores). The Group recorded significant improvement in profitability in H2 of FY23 due to the benefits of operational leverage and reset of the used cars business.
The Group remains to handle transactions worth over USD 2.2bn (on an ARR basis) annualized. It boasts a significant cash reserve of over Rs 12,000mn at the group level dedicated to growth projects both organically and inorganically. A focus on optimizing unit economics has also allowed the core businesses to turn EBITDA positive in the first two-quarters of FY24 as well as PAT/ net income positive for the second quarter of FY24 in its pursuit to drive profitable growth.
Speaking about the development, Amit Jain, Co-founder and CEO of CarDekho Group said, “The remarkable business expansion reflects the trust placed in CarDekho Group by over 62million users & more than 1.2 lacs people directly & indirectly working with us to fulfill the mobility dreams of Bharat. This widespread support from our valued stakeholders has been the driving force behind our success. Thriving upon the principle of financial inclusion, the group has enhanced its focus on providing financing and insurance solutions across its ecosystem. We remain dedicated to pioneering the automotive and financial technology sectors, delivering innovative solutions that will fuel our record-breaking growth in the years to come and contribute significantly to our profit pool.”
InsuranceDekho recorded a premium of Rs 1900 crores in FY 23 with an agent force of nearly 1 lakh agents on the ground and emerged as a preferred insurance solution provider which is currently present in 1500+ cities, covering 98% of pin codes across the country. It gets 90%+ premium from tier 2 and beyond making insurance accessible to real Bharat.
InsuranceDekho has served 6Mn+ customers to date and is currently insuring 12 Indians every minute. By securing more than $200 million of fundraising in FY 23, InsuranceDekho has not only emerged as the leading Indian Insurtech; but has also cemented its position amongst the very few startups to be able to raise large Series A and B funding in the same year.
Rupyy, the Group’s fintech platform, has positioned itself as India’s largest distributor of used car loans, achieving an annualized run rate surpassing Rs 12,000 crore across 1500 cities as of September 2023. Rupyy has a significant distribution moat of having more than 35 banks/NBFCs as financing partners and nearly 12000 channel partners to make used car financing more accessible to real Bharat. Rupyy’s growth trajectory is as impressive as its service, which delighted over 1.5lacs customers in FY23.
“We’ve placed strong emphasis on our strategic use of operational leverage and our unwavering dedication to enhancing unit economics and efficient capital allocation across our diverse business segments. With all the strategic imperatives implemented in FY23 like optimizing unit economics and technology-driven innovations across our multifaceted verticals, it’s worth noting that we’ve achieved the significant milestone of turning PA/ Net income positive in H1 FY24. The group adheres to the highest order of Corporate Governance and has a well-established framework of ESG charter & operational excellence,” Mayank Gupta, Group Chief Financial Officer added.