CARDEKHO IN TALKS TO RAISE $100-150 MILLION

MUMBAI: Automobile portal CarDekho is navigating a new round of funding that is likely to raise its valuation marginally, as it steers towards a public listing over the next 18-24 months, according to three people aware of the development.

The company is in talks with investors to raise $100-150 million in a largely secondary round where early investors will clock in full or partial exits, the people said. The company has hired homegrown investment bank The Rainmaker Group to help it with the process, the people added.

“The round is largely secondary as some early investors want to cash out and the promoters want to realign the captable ahead of the public listing,” the first person said on the condition of anonymity. “The company is now being valued at around $1.3 billion.”

This is a shade higher than the $1.2 billion it was last valued at in October 2021 when it raised $250 million in a mix of primary and secondary funding round. In that round, investors led by Leapfrog Investments, alongside Canyon Partners, Mirae Asset, Harbor Spring Capital and existing investors Sequoia Capital India and Sunley House invested in CarDekho.

However, the company may also raise some primary capital as part of the current round “depending on investor interest”, the second person said, also on the condition of anonymity.

According to the people, CarDekho, owned by Girnar Software, has seen significant investor interest after it focused on stronger unit economics and swung into the black, with an Ebitda (earnings before interest, taxes, depreciation, and amortization) margin of around 8-10% for the three quarters ending 31 December 2023.

Spokespersons for CarDekho Group and The Rainmaker Group did not respond to Mint’s queries till press time.