CarDekho, a leading online platform for buying and selling cars, is gearing up for its IPO, expected to take place in June 2025. Founded by Amit Jain and Anurag Jain in 2008, CarDekho has grown into a major player in India’s auto-tech sector. The company’s innovative approach to the automotive market has attracted significant investor interest, positioning it to raise around ₹4,100 crore through the public offering. This blog will dive into CarDekho’s business model, financials, IPO details, and future prospects.
About CarDekho
CarDekho provides a comprehensive range of services for car buyers and sellers. The platform offers detailed car specifications, expert reviews, price comparisons, and videos to help consumers make informed decisions. CarDekho has expanded its offerings to include car finance, insurance, and used car transactions, making it a one-stop platform for everything related to automobiles.
With partnerships with over 4,000 car dealers and numerous financial institutions, CarDekho has a well-established presence across India and has expanded to Southeast Asia and the UAE. The platform also utilizes advanced technologies like AI and data analytics to enhance user experiences and improve the buying process.
CarDekho IPO: Key Details
CarDekho’s upcoming IPO will consist of a fresh issue and an offer for sale by existing shareholders. Here are the key details for the IPO:
| Particulars | Details |
| IPO Date | First week of June 2025 (Tentative) |
| IPO Listing Date | Second week of June 2025 (Tentative) |
| Face Value | ₹10 per share |
| IPO Price Band | ₹820 per share (expected) |
| Total Issue Size | ₹4,100 crore |
| Fresh Issue | ₹3,000 crore (expected) |
| Offer for Sale | ₹1,100 crore (expected) |
| Issue Type | Book Built Issue |
| Listing | BSE, NSE |
| Reserved for QIBs | 75% |
| Reserved for Non-Institutional Investors | 15% |
| Reserved for Retail Investors | 10% |
Financial Performance of CarDekho
CarDekho has experienced significant growth since its inception, although it has faced some financial challenges in recent years. Below is an overview of the company’s financials:
| Particulars | March 2021 (₹ in Cr) | March 2022 (₹ in Cr) | March 2023 (₹ in Cr) |
| Revenue | ₹2,331 | ₹1,600 | ₹2,023 |
| Profit After Tax (PAT) | ₹-562 | ₹-535 | ₹-341 |
While CarDekho has seen fluctuations in its profitability, it continues to generate significant revenue, reflecting the growing demand for online car sales and related services in India. The company’s net loss has been decreasing, signaling improvement in operational efficiencies and future growth potential.
CarDekho’s Business Model and Growth Strategy
CarDekho operates on a diversified business model, providing a range of services, including:
- New and Used Car Sales: The platform offers users the ability to compare, review, and purchase cars online.
- Car Financing and Insurance: Through partnerships with financial institutions, CarDekho enables seamless access to financing and insurance options.
- Vehicle Inspections and Quality Assurance: CarDekho has established a network of inspection centers to ensure quality assurance for used cars.
CarDekho’s Zigwheels platform has extended its reach to Southeast Asia, including the UAE, Philippines, Malaysia, and Indonesia, while its InsuranceDekho division is rapidly growing, providing tailored car insurance solutions.
CarDekho IPO Objectives
The funds raised from the IPO will be used for:
- Enhancing the CarDekho platform: Improving user experience, expanding features, and boosting technological infrastructure.
- Meeting Working Capital Needs: Ensuring smooth business operations and supporting ongoing growth.
- General Corporate Purposes: Strengthening the company’s market position and pursuing strategic initiatives.
Growth Prospects and Future Expansion
CarDekho is positioning itself to capitalize on the growing Indian auto-tech market, which has seen a shift toward digitalization and online car buying. The used car market in India is growing rapidly, and CarDekho’s diversified revenue streams and strong partnerships place it in a prime position to benefit from this trend. The company plans to expand its footprint in Southeast Asia and the Middle East, areas where car demand is also rising. CarDekho is also focusing on enhancing its technology stack, ensuring it remains at the forefront of the industry.
Risks and Challenges
CarDekho faces several risks and challenges as it heads into its IPO:
- Competition: The online car marketplace is highly competitive, with established players like Cars24 and OLX Autos vying for market share.
- Economic Cycles: CarDekho’s performance is linked to the health of the auto industry, which can be impacted by economic downturns and changes in consumer spending behavior.
- Quality Assurance: Maintaining high-quality standards in vehicle inspections and ensuring customer trust is crucial to CarDekho’s continued success.
- Regulatory Risks: The company must navigate the regulatory environment in multiple regions, which may introduce new challenges.
CarDekho IPO: What to Expect
With a ₹4,100 crore IPO in the pipeline, CarDekho’s public offering is expected to be a major event in the Indian stock market. The company’s diversified services, strong investor backing, and expansion into international markets make it an attractive prospect. However, potential investors should carefully evaluate the risks and competition within the auto-tech space.
The IPO listing date is tentatively set for the second week of June 2025, and retail investors will be able to sell their shares after 10 AM on the listing day. For those looking to gain exposure to the rapidly growing online auto sector, CarDekho’s IPO presents a promising investment opportunity.
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