CarDekho, the unicorn of the Autotech sector, announced on Monday that its losses for the fiscal year 2022 have dropped to Rs 246 crore, thanks to improvements across all of its industry sectors, such as insurance broking, financing for automobiles, scooters, and electric cars, and car sales.
The company has lost 246 crores in total for the year, compared to the 341 crores it suffered in the previous year. The venture announced that it intends to become profitable by FY24.
Before 2023, CarDekho declared its intention to reach EBITDA-level profitability.
Spending, which grew by 70%, largely affected the company’s bottom line, however, they also included a one-time expenditure associated with transitioning a unit into a subsidiary company.
“The group continues to focus on driving profitable growth coming from the benefits of operating leverage, continuous focus on improving unit economics across all our business lines… The group has a clear path to turn profitable at a consolidated level by FY24,” said Mayank Gupta, group chief financial officer at CarDekho.
According to CarDekho, the step of a listing is already begun. This is very likely to take place in the latter part of 2022 or during the first half of 2023, according to several media reports.
“We believe that public listing will be one of the key milestones in our journey and we are evaluating it subject to requisite approvals and conducive market conditions,” Mayank said.
Considering the slowing market, low-risk tolerance, and general uncertainty around an imminent recession, many startups, such as Droom, Oyo, Ola, boAt Lifestyle, and Pharmeasy, have delayed or cancelled their IPOs in the past six months or so.
As of March 2022, according to CarDekho, it has more than 5,000 user card lending agent providers, 50,000+ insurance partners in 1,300 cities, and more than 3,500 used vehicle dealers. In FY22, it issued more than lakh auto loans and aided in the issuance of 16 lakh insurance policies.
About CarDekho:
The top automotive search engine in India, CarDekho.com, assists clients in selecting the best vehicles for their requirements. Rich automotive content, comprising expert reviews, comprehensive specs and prices, comparisons, as well as videos and photographs of all automobile brands and models available in India, can be accessed on the company’s website and mobile application. It was founded in 2008 by Amit Jain and owned by Girnar Software.