 "Auto-tech solutions firm CarDekho Group expects 60% growth in 2024")
CarDekho Group, the auto-tech solutions provider, expects to maintain its 60 per cent year-on-year growth in the new year, as the group continues to diversify within the auto space.
“After maintaining a growth rate of over 60 per cent in the last three years, the Group projects similar favourable growth in the upcoming year,” said the company.
The Group handles transactions worth over $2.2 billion (on an ARR basis) annualised. It has a cash reserve of over Rs 13,000 million at the group level dedicated to growth projects both organically and inorganically. A focus on optimising unit economics has also allowed the core businesses to turn Ebitda positive in the first two quarters of FY24 as well as PAT (profit after tax) or net income positive for the second quarter of FY24 in its pursuit to drive profitable growth.
"The success of CarDekho Group in 2023 affirms our commitment to utilising technology for the widespread accessibility of automotive and financial mobility solutions throughout India,” said Amit Jain, co-founder and CEO of CarDekho Group. “As we enter 2024, our focus remains steadfast on sustaining this growth momentum. We have plans to introduce innovative products and solutions, leveraging AI, aiming to foster greater financial inclusion both in India and internationally, while delivering unparalleled customer experiences.”
The firm said it has been able to maintain a strong growth trajectory due to its growth engines like InsuranceDekho (an insuretech platform), Rupyy (fintech platform for used car financing) and its Southeast Asia Business (auto-tech and used car financing platform in the region). InsuranceDekho surpassed an annualised premium Run Rate of Rs 3,600 crore and has over 2,000 employees.
The company recorded a revenue of Rs 2,331 crore in FY23, up by 46 per cent from Rs 1,600 crore in FY22. The firm recently said it achieved this revenue despite the shutdown of its used car retail business. The company said that it has controlled the losses despite maintaining a steady growth whereby it recorded a loss of Rs 562 crore in FY23 against Rs 535 crore in FY22 (without adjustment of accounting gain of Rs 290 crore of exceptional one-time market-to-market gain of investments in associates; if adjusted, the reported losses were Rs 246 crore). The Group recorded significant improvement in profitability in H2 of FY23 due to benefits of operational leverage and reset of the used cars business.