Upcoming IPO: Shark Tank India Judge Amit Jain's CarDekho Likely To Raise Rs 4,000 Crore Via Public Issue

CarDekho, the popular online platform for buying and selling cars co-founded by Shark Tank India judge Amit Jain, is gearing up for an IPO on Indian stock exchanges, potentially in 2024. According to a report by Moneycontrol, CarDekho has initiated talks with investment banks to plan the public offering, which could raise around Rs 3,000-4,000 crore. This move positions CarDekho as the second auto classifieds portal to pursue an IPO in India after CarTrade Tech, which went public in August 2021, raising Rs 2,998.5 crore.

IPO Plans and Structure

As CarDekho advances in its IPO plans, it is engaging several investment banks, with appointments expected soon. The report stated that the IPO will likely consist of a mix of fresh issue funds aimed at expansion and growth initiatives, coupled with a secondary share sale by early investors wishing to partially exit their investments.

Founded in 2008 by a team of young IIT graduates, CarDekho has emerged as one of India's most recognized auto-tech platforms. The company boasts a powerful lineup of investors, including prominent names like Google Capital, Tybourne Capital, Hillhouse Capital, Sequoia Capital, HDFC Bank, Ratan Tata, and Times Internet. The funding raised through the IPO is expected to boost CarDekho's growth, allowing it to expand its offerings and strengthen its technological infrastructure.

CarDekho's Business Model

CarDekho has built a platform where users can buy both new and used cars with ease. The platform provides detailed specifications, expert reviews, and car comparisons, covering nearly all models and brands available in India. To simplify the buying journey, CarDekho also offers photos, videos, and price comparisons, enhancing customer decision-making.

Through partnerships with over 4,000 car dealers and numerous financial institutions, CarDekho ensures a streamlined purchase process, providing users with financing options and dealership recommendations. The platform also supports car manufacturers and dealers with tech-enabled tools, such as lead management apps for dealer executives, cloud-based sales tracking, and virtual online showrooms.

Moreover, CarDekho's offerings extend beyond customer service. The platform supplies car dealers with tools like call tracker solutions, digital marketing support, and outsourced lead management services. These features assist dealers in efficiently managing customer inquiries, converting leads, and optimizing sales outcomes.

With its Zigwheels platform, CarDekho has expanded into Southeast Asia, establishing a presence in the UAE, Philippines, and Malaysia. Additionally, its Oto brand operates in Indonesia, demonstrating CarDekho's adaptability to international markets. Domestically, CarDekho has diversified its services to include car insurance, with its InsuranceDekho division offering tailored coverage options.

Tech IPO Surge in 2024

CarDekho's potential IPO comes amid a resurgence of tech IPOs in 2024, following a lull over the past two years. The industry has witnessed notable public offerings, including Swiggy's highly anticipated IPO scheduled for November 6, expected to raise a substantial Rs 11,327 crore. Other tech companies that have debuted on the stock market this year include Brainbees Solutions (FirstCry), Ola Electric, Unicommerce eSolutions, iXigo, Awfis Space Solutions, and GoDigit Insurance.