CarDekho’s insurance unit InsuranceDekho has raised its first external investment round of Rs 300 crore ($36.5 million) led by West Street Global, the investment arm of the Goldman Sachs Group.
According to the RoC filings with the Registrar of Companies, the Gurugram-headquartered company’s board has passed a special resolution to issue 1,49,16,506 equity shares at a price of Rs 201.12 each to raise Rs 300 crore.
West Sreet Global led the round with Rs 153.5 crore and holds a 14.71% stake in InsuranceDekho. While the TVS Capital Fund pumped in Rs 72.35 crore for a 6.95% stake.
Other investors, including Investcorp Private Equity, Avataar Ventures, Alstroemeria Investments, and individuals such as Vineet Dhingra, N Laxmi Narayan, Shridham Sons, and others, collectively participated, making an investment of Rs 74.15 crore.
In 2019, CarDekho launched its insurance platform to help customers buy motor and health insurance. It has since expanded into life, term, and retirement plans, among other forms of insurance.
The following year, the insurtech startup received $20 million in funding from its parent company GirnarSoft, which it said it would use for branding and strengthening its tech, product, and sales teams.
Autotech unicorn CarDekho said its loss for the financial year 2022 has narrowed to Rs 246 crore, lower than a loss of Rs 341 crore a year ago. The company said it hopes to swing to profit by FY24.
CarDekho had previously said it hoped to achieve EBITDA-level profitability before 2023.
Consolidated revenue from operations grew nearly 2X to Rs 1,598 crore in FY22 from Rs 884 crore the previous year, the company said.
CarDekho is also preparing for its listing journey. As per media reports, this is likely to happen in early 2023.
“We believe that public listing will be one of the key milestones in our journey, and we are definitely evaluating it subject to requisite approvals and conducive market conditions,” Mayank Gupta, Group Chief Financial Officer at CarDekho, said.
Edited by Suman Singh