CarTrade.com is an online platform for vehicle auction and this financial year, they have blasted their business off the roof. The online vehicle auction business of CarTrade is known as CarTradeExchange and it has recorded a net overall profit of 51% than its last Financial Year of 2019. 51% profit amounts approximately to Rs. 1.67Cr which the company has recorded in FY20. CarTrade is a Mumbai-based Startup and it has witnessed 1.5 times the growth recorded in the FY19 which amounted to Rs. 1.10Cr.
The Mumbai-based Vehicle business start-up recorded a net profit of Rs. 1.06 Cr in the Financial Year 2020 which represents a total of 33% growth in net profit from FY10 that amounted to Rs. 80 Lakhs. Speaking of numbers, the total revenue increase of the company came out to be 23% from Rs. 10.67 Cr to Rs. 13.09 Cr. The revenue generated through operational income recorded by the company this year came out to be Rs. 12.90 Cr.
CarTrade as a business has been recording a horizontal curve in profits from the past three consecutive years, having Rs. 33 Lakhs in the Financial year 2018 to 1.06 Cr. in FY2020.
CarTradeExchange spends a lot of money on Employee benefits. Why?
CarTrade.com spent approximately 60% of their total income on employee benefits in Financial Year 2019 and similarly, they opted for the same strategy this year. “The more you give, the more you get!” Is that so? Well, the numbers that the start-up has generated this year speaks in favour of this ideology. According to sources, after assessing the Financial Statement of the company for Financial Year 2020, the analysts say that the company paid Rs 6.25 Cr as salaries, wages and incentives to employees. Approximately Rs. 34 Lakh was spent as a contribution to provident fund and other investments and Rs. 6.3 Lakhs on ESOPs (Employee Stock Ownership Plan).
Will Cartrade.com enter Unicorn Club?
Well, the answer to this question maybe yes, if the numbers continue to grow at this pace. The start-up was anticipated to enter into the infamous Unicorn Club this year but it will happen eventually as the numbers that the company is generating are impressive and shows growth. As per a report of the Indian Start-up Ecosystem, CarTradeExchange was in the list of companies expected to enter Unicorn Club with other big names such as LensKart and FirstCry. Both of these companies entered the club earlier this year and Cartrade.com is next.
Future Plans of the company:
According to reports, speculations are floating around the industry that the CarTrade.com is planning to go public by the year 2022 and has allegedly saved Rs. 400- 500 Crores for acquisitions. Sources also suggest that CarTrade.com CEO, Sanghi is seeking an NBFC (Non-Banking Finance Company) license to enter into the lending business as well.