CarDekho Group Expects 60% Growth In 2024

Autotech unicorn CarDekho expects to maintain its 60% year-on-year growth in the new year, as the group continues to diversify within the auto space.

"After maintaining a growth rate of over 60% in the last three years, the group projects similar favorable growth in the upcoming year...," the company said in a statement on Wednesday, attributing the growth to its new auto sales business, car financing platform Rupyy, insurtech platform InsuranceDekho, and and its Southeast Asia business.

The Jaipur-headquartered startup group's revenue rose 46% to Rs 2,331 crore in FY23 from Rs 1,600 crore in FY22. Its loss had widened marginally to Rs 562 crore in FY23 from Rs 535 crore loss in FY22.

However, it claimed full profitability for the second quarter of FY24.

The firm said it is entering 2024 with a cash reserve of over Rs 1,300 crore, earmarked for both organic and inorganic growth projects. Notably, group company InsuranceDekho had raised $200 million, or about Rs 1,700 crore, in 2023 through two large funding rounds.

Last year also saw CarDekho discontinue its used car franchise retail and consumer-to-dealer businesses, citing "inviable unit economics". However, it is now focused on selling new cars and has achieved a monthly active user base of over 6 crore.

Its used car loan distribution platform, Rupyy, secured a 15% market share in 2023 and is aiming to expand it to 20% in the next few years. InsuranceDekho, which has touched an annualised premium run rate of Rs 3,600 crore, is also looking to expand from 1.5 lakh agents to 2 lakh agents in 2024, reaching 6 lakh villages. It currently receives over 90% of its premium from Tier 2 and beyond.