Founded by Amit Jain and Anurag Jain in 2008, CarDekho is an automotive portal in India. The platform is specifically dedicated to helping buyers make informed decisions about the cars they want with services like car research, reviews, comparisons, price quotes, insurance, and finance solutions. Till now, the platform has collaborated with over 4,000 dealers and lists over 100,000 cars.
Today, CarDekho has established itself as a go-to destination for both car buyers and sellers. The company has also been able to get accolades such as “Best Automotive Website” and “Great Place to Work” under its belt.
Journey till now
Speaking of how the company started, for some reason, the Jain brothers had to leave their previous jobs and decided to start something of their own. Soon, they founded an IT outsourcing company called GirnarSoft.
The journey was no cakewalk, as they initially had some trouble racing out to clients over emails and calls. It took some time before they could work with their very first client. Eventually, it helped them to expand their portfolio and build credibility. The success of the first startup led to the founding of CarDekho. Both their ventures were a hit, and this provided the brothers with a stable income flow.
There were, however, other issues along the way. One of the major challenges Amit faced while building the platform was building the right team. He says that there were also certain regulatory challenges that they had to overcome, apart from the struggles to maintain partnerships with car dealerships.
In terms of what sets CarDekho apart from the others in the market is that they provide a full spectrum of services, no matter at what stage the buyer is at. Another aspect that helps them have a competitive edge over others is the transparency and customer service they provide. It’s because of this that they have been able to establish a loyal customer base over the years.
The company also places a whole lot of importance on onboarding the latest trends and technologies. They also think it’s important to actively be a part of the conferences and workshops for continuous awareness.
Anticipated growth
CarDekho has grown from a used automobile search brand to a comprehensive digital platform that offers new and used car sales, financial services, insurance, and international trade.
This year, the company aims to increase by 70%. Despite supply chain issues, the used automobile sector saw greater demand during the pandemic. With supply restored, the market is likely to have a 5% to 10% price adjustment, and CarDekho expects growth to nearly quadruple over the next four years, particularly in the fourth quarter of this year.
InsuranceDekho, Rupyy (fintech), and worldwide business expansion are among CarDekho’s primary growth drivers this year.
InsuranceDekho has a wide network of 70,000 partners covering 93% of India’s pin codes, with the aim of increasing penetration in Tier II and III cities. Rupyy, the loan vertical, plans for 60-70% growth in the next two to three years through partnerships with 26 institutions. The worldwide company, which operates in Indonesia, Malaysia, and the Philippines, aspires to treble its $27 million yearly revenue.
Despite competition from younger firms such as Cars24 and Spinny, CarDekho’s goal is to achieve 70% overall group growth this year. Prioritizing profitability over GMV or rapid expansion, the company recognizes the challenges of the used automobile industry, emphasizing the necessity to develop a viable playbook.
With the insurance vertical accounting for 35-40% of the group’s revenue, the focus is on doubling down on the used car auction segment, which is expected to expand by 40%. CarDekho anticipates large investments in the fintech firm, investing a $100-million injection, and intends to raise a comparable amount for the insurance vertical to fuel additional expansion.
They are altering their marketing strategy to reflect the growth aim and profitability focus. The ad budget will face a considerable cut, with a targeted 60%-70% decline compared to the previous year. They also expect significant profits from the exposure received through Shark Tank. While digital channels remain the major emphasis, their TV advertising will be determined by the type of campaigns we have in the works. The shift is needed to optimize resources and maximize brand visibility.
What does it take to build a unicorn?
At the Girnar Elevate Summit that took place a year ago, Amit Jain talked about the key aspects that one needs to focus on in order to build a unicorn. One of the very first things he thinks is to have clarity on the fundamentals instead of chasing valuations. The key fundamental that he stresses is maintaining the profitability of the company.
Apart from that, Amit Jain also highlights the importance for companies to work on product differentiation, building a brand and community, and the D2C model.
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