Amit Jain plan Rs 4000Cr IPO – Discussions are being opened by CarDekho.com, a platform for buying and selling cars and related services, co-founded by Shark Tank India judge Amit Jain, with investment banks as the company aims to list on Indian bourses sometime next year, according to the reports. The second auto classifieds portal to go public in India after 2021’s CarTrade Tech Limited will be CarDekho
One of the people cited above, speaking on condition of anonymity, said that “CarDekho is engaged in talks with several investment banks for its IPO plans. Around Rs 3,000 crore to Rs 4,000 crore is the amount the company is looking for through the IPO, and banker appointments are expected soon.” Further, a mix of fresh fundraising for the company’s growth plans as well as a secondary share sale by early investors in the company included in the IPO.
IPO Plan & Structure
As CarDekho’s IPO plans are getting advanced, several investment banks are being engaged, with appointments expected soon. As stated above, the report indicates that the IPO is likely to be comprised of a mix of fresh issue funds aimed at expansion and growth initiatives, along with a secondary share sale by early investors looking to partially exit their investments.
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CarDekho Business Model
Founded in the year 2008, by a team of youthful IIT graduates, CarDekho has emerged as one of the widely recognized auto-tech platforms within India. A powerful lineup of investors, including prominent names like Google Capital, Tybourne Capital, Hillhouse Capital, Sequoia Capital, HDFC Bank, Ratan Tata, and Times Internet, boasts the company.
CarDekho’s growth is expected to rise through the funding raised by the IPO, allowing it to expand its offerings and strengthen its technological infrastructure. A platform is being built by CarDekho, where buying both new and used cars allows users to ease. Further, detailed specifications, expert reviews, and car comparisons are provided on the platform, covering nearly all models and brands available in India. To simplify the buying journey, photos, videos, and price comparisons are also offered by CarDekho, enhancing decision-making.
CarDekho, besides serving as mere a platform to buy and sell cars, also provides an array of tech-enabled tools for car manufacturers and car dealers. These tools include apps for dealer sales executives to manage leads, cloud services for tracking sales performance, call tracker solutions, digital marketing support, virtual online showrooms, and outsourced lead management operational processes for taking consumers from inquiry to sale.
The launch of its Zigwheels platform in the UAE, Philippines, and Malaysia, and its Oto brand in Indonesia, has seen the company expand beyond India’s borders to Southeast Asia. Besides, the company has diversified into the car insurance business through Insurance Dekho.Com.
Tech IPOs in 2024
CarDekho’s potential IPO is anticipated amid a resurgence of tech IPOs in 2024, following a lull over the past two years. Notable public offerings have been witnessed by the industry, including Swiggy’s highly anticipated IPO scheduled for November 6, which is expected to raise a substantial Rs 11,327 crore. Other tech companies that have debuted on the stock market this year include Brainbees Solutions (FirstCry), Ola Electric, Unicommerce eSolutions, iXigo, Awfis Space Solutions, and GoDigit Insurance.