The automobile industry has already tasted success from online listings and sales, but now this fresh round of funding for CarDekho takes it a notch higher. According to reports, CarDekho won a whopping Rs 307 crore in funding from a round led by Chinese funds Hillhouse Capital and Tybourne Capital. This gives the automobile industry a much-needed boost.
These funds seem to have a bright future with CarDekho. Amit Jain, co-founder and chief executive at CarDekho says, “Given the adoption of the internet in India, especially through mobile, we’re targeting revenue of Rs 500 crore- Rs 600 crore, and a billion dollar valuation over the next four to five years.”
They also have a business strategy in place to use the funds in an effective way. “We will be using the proceeds primarily towards brand building and marketing. We will consider acquisitions as well, and have held talks with other startups that we feel can enhance our technology platform,” says Jain.
CarDekho is not the sole ecommerce company to offer automobile listing and buying options online. The other companies that are its rivals include CarTrade.com, CarWale.com and also other multi-category classifieds sites such as OLX and Quikr.
This is proof that different categories are gradually gaining mileage in Indian ecommerce, so there is no single ‘successful’ category or single ‘formula’ to success. As long as the products or services being offered online are of good quality and are priced competitively, the relevant product category will be a hit with consumers.