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Tag: Girnar Software

  • CarDekho to invest $20 million in the pre-owned car business

    CarDekho to invest $20 million in the pre-owned car business

    NEW DELHI: CarDekho will invest $ 20 million (approx. Rs 150 crore) in its used car business in the ongoing financial year.

    The Girnar Software owned venture plans to open 250 franchise stores this year and ramp up this network to over 1,000 retail locations by 2022. The franchise outlets would be branded CarDekho Trustmark stores.

    The used car market is seeing a surge in demand as buyers are increasingly preferring for personal mobility instead of public transportation due to Covid2019 scare.

    CarDekho co-founder, Amit Jain said, “There is a surge in demand for used cars as this pandemic has reinforced the need for a personal vehicle. In FY20, there were 1.3 used car transactions for every new car transaction. We see this number going well above 1.8 times in the current year as people prefer personal mobility at a lower cost. We are entering into the franchise business model for selling Trustmark cars with the aim of providing economical personal mobility solutions to people in the most transparent and hassle-free manner.”

    The pre-owned car market in India crossed 4 million units in size as the industry saw tailwinds post the GST rationalization to 12-18% and penetration of organized channels, said findings of the Indian Blue Book, compiled by Mahindra First Choice Wheels Ltd, released last year.

    The Trustmark stores will also provide on the spot Loans and insurance service along with RC transfer facility under one roof. Moreover, the evaluation report of every Trustmark car is transparently available on the website and any customer can see it and discuss it before buying.

    Announcing its foray, the company said it has launched its first franchise store for the sale of certified used cars in Jaipur. The next upcoming stores are planned in Delhi NCR and Bengaluru respectively.  

    The company already operates over 50 CarDekho Gaadi stores across India where it acquires used cars from their existing owners.

    Earlier in June, CarDekho reported that its digital platform saw a 99% recovery in customer traffic for used cars after the lockdown wherein cars in the ₹1-5 lakh range saw maximum traction.

  • CarDekho buys Zingwheels; Times Internet invests in Girnar

    CarDekho buys Zingwheels; Times Internet invests in Girnar

    MUMBAI: In a bid to consolidate its position in the auto portals space, Girnar Software, which owns CarDekho.com & Gaadi.com, has acquired Zigwheels.com. 

     

    Additionally, Times Internet has come on board as an investor in Girnar Software along with Sequoia Capital, Hillhouse, Tybourne, Ratan Tata and HDFC Bank.

     

    Zigwheels.com will operate independently within the Girnar Software umbrella.

     

    “Having been a part of India’s leading and most respected media group, Zigwheels.com comes with a very strong content pedigree. This strategic acquisition reinforces our commitment to further enrich our content to enable us to engage even more deeply with our consumers. This also takes our market leadership to the next level in the digital auto vertical across visitors, dealer base and revenues,” said Girnar Software CEO Amit Jain.

     

    “We are delighted to welcome Times as a new investor in our company and look forward to their support as we continue our journey and further consolidate our leadership in the online auto space,” added  Jain.

     

    “We see tremendous growth and value creation opportunities in the online auto industry in India and overseas.  Girnar Soft, as the leader in this space, is best positioned to take advantage of this opportunity. We are excited to be partnering with an exceptional management team which has built great value and we are confident will continue to blaze trails in the years to come,” added Times Internet CEO Satyan Gajwani.

     

    This is Girnar Software’s second acquisition. Last September, the company acquired the Nasper Group-owned Gaadi.com, to fortify its position in the digital used car segment. 

     

    The core business model of Girnar Software is earnings from lead generation for new and used cars, media sales on their portals, monetising the lifecycle of a car owner via CarBuddy app.

     

    The company is also expanding across SE Asia, Africa, Middle East and South America.

     

    The Rainmaker Group (TRMG) is the financial advisor to Girnar Software for the transaction.

  • CarDekho.com raises $50 million in funding led by Hillhouse Capital

    CarDekho.com raises $50 million in funding led by Hillhouse Capital

    MUMBAI: CarDekho.com has closed its second round of funding and has raised $50 million. The funding was led by Hillhouse Capital with participation from Tybourne Capital and Sequoia Capital.

    The single transaction funding was concluded early this week. Elara Capital acted as the exclusive financial advisor to the transaction. With this the parent company Girnar Software is now valued at $300 million.

    Sharing plans about this venture GirnarSoft CEO and co-founder Amit Jain believes that together CarDekho.com and Gaadi.com are by far the largest players in online auto classifieds space by revenue and traffic in the country. Jain’s vision is to be company with global footprint through its innovative products and services.

    “This is the largest quantum of fund raise in this segment in India so far. We see the second round of investment as an endorsement of our strategy and progress so far. Our revenues have grown three-fold since 2013 when we received our first round of funding from Sequoia, and we are doubling our lead generation Y-O-Y. This is the time we are looking to rapidly expand our business and therefore the funding adds to our fast paced growth in the online auto portal segment,” added Jain.

    Jain feels that this is a very exciting time for the company and a high point in the Indian automobile industry.

    “With this funding we have plans to enhance the technology and services of CarDekho.com along with increased focus on brand building and marketing initiatives of the company. As the #1 auto portal of the country, it is also our responsibility to develop the category by providing the best offerings to consumers, best services for dealers and top notch support to OEM manufacturers,” said Jain.

    Commenting on the investment, partner of Hillhouse Capital David Rhee stated that it observes a tremendous growth opportunities in the online automobile classified market in India. “CarDekho, as the clear leading player in this space, is the best positioned to take advantage of this market. We are in the early stages of the development of the auto industry and its transition to online. We are excited to be partnering with such an exceptional management team to continue to build and grow this business over the long term,” Rhee said.

    Tybourne Capital portfolio manager Eashwar Krishnan added, “We have a substantial amount of capital invested across global classified assets and are excited to add CarDekho to our portfolio. We view CarDekho as a direct comparable to Autohome in China (another Tybourne investment), and as the leader in the space, we expect CarDekho to capture a substantial portion of the auto classifieds market in India. We look forward to partnering with the management team as the company moves into its next phase of growth.”

    Sequoia Capital partner Shailesh Lakhani said, “CarDekho has redefined the purchase experience for car buyers in India. Led by Amit and Anurag, the company has assembled one of the best internet teams in India. We are excited to welcome Hillhouse and Tybourne as new investors to CarDekho and their support as we continue the journey to building a large internet auto company.”