NEW DELHI: The CarDekho The workforce, whose companies span auto, insurance coverage and monetary products and services areas, is well-capitalised and isn’t looking for finances from buyers in this day and age.
“We have Rs 1,400 crore (at the group level) in the bank. Companies which are sitting on sufficient cash reserves will avoid raising capital because they may face the heat of a down round (when private companies raise funds at a lower valuation than previous funding round) if they go out in the market right now,” co- founder & CEO Amit Jain said in an interview. Valued at $1. 2 billion, CarDekho has raised about $450 million from investors so far to fund the group’s varied business verticals.
Jain aims to steer the group towards profitability in the current financial year. With the global macroeconomic scenario still on a sticky wicket, investors continue to be prudent with funds and are increasingly pushing their portfolio companies to turn profitable.
CarDekho, backed by Sequoia Capital and Goldman Sachs Asset Managementscaled down its highcash burn used car business, shutting all its brick and mortar Gaadi stores, barring the one in Jaipur, which facilitated physical inspection of used cars before facilitating buying and selling transactions.
“We prudently cut down burns in areas that were not looking healthy from a uniteconomics perspective, given the macro environment. Used car space is still an unorganized market and we could not come up with a winning formula to make the segment organized through the use of technology,” Jain stated.
The workforce’s new auto and monetary companies are already winning, whilst its insurance coverage subsidiary, which previous this 12 months controlled to garner $150 million in early degree capital from buyers, has controlled to wreck even, claimed Jain. “We are eyeing a full-year profitability at the group level this financial year,” stated Jain. In layman phrases, unit economics measures an organization’s skill to earn money from the sale of a unmarried unit. In the fiscal 2021-22, the corporate had posted consolidated losses of Rs 246.5 crore.
“We have Rs 1,400 crore (at the group level) in the bank. Companies which are sitting on sufficient cash reserves will avoid raising capital because they may face the heat of a down round (when private companies raise funds at a lower valuation than previous funding round) if they go out in the market right now,” co- founder & CEO Amit Jain said in an interview. Valued at $1. 2 billion, CarDekho has raised about $450 million from investors so far to fund the group’s varied business verticals.
Jain aims to steer the group towards profitability in the current financial year. With the global macroeconomic scenario still on a sticky wicket, investors continue to be prudent with funds and are increasingly pushing their portfolio companies to turn profitable.
CarDekho, backed by Sequoia Capital and Goldman Sachs Asset Managementscaled down its highcash burn used car business, shutting all its brick and mortar Gaadi stores, barring the one in Jaipur, which facilitated physical inspection of used cars before facilitating buying and selling transactions.
“We prudently cut down burns in areas that were not looking healthy from a uniteconomics perspective, given the macro environment. Used car space is still an unorganized market and we could not come up with a winning formula to make the segment organized through the use of technology,” Jain stated.
The workforce’s new auto and monetary companies are already winning, whilst its insurance coverage subsidiary, which previous this 12 months controlled to garner $150 million in early degree capital from buyers, has controlled to wreck even, claimed Jain. “We are eyeing a full-year profitability at the group level this financial year,” stated Jain. In layman phrases, unit economics measures an organization’s skill to earn money from the sale of a unmarried unit. In the fiscal 2021-22, the corporate had posted consolidated losses of Rs 246.5 crore.