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Mahesh Murthy teamed up with Pravin Gandhi and <keyword id="261607" type="PERSON" weightage="20" keywordseo="Bharati-Jacob">Bharati Jacob</keyword> to set up Seedfund in 2005, which is a leading early-stage venture capital fund with marquee investments, including <keyword id="817470" type="COMPANY" weightage="20" keywordseo="Carwale">Carwale</keyword>, RedBus, MyDentist, Chumbak, AFAQs, and Vaatsalya. The trio was passionate about the internet boom and with giants like Google, Motorola, and Reliance backing the fund, they saw nothing stopping them when they organized their first round which was $15 million. 

 

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“One of the things that we were clear about was that doing business in India doesn’t take a lot of money, you needed to invest that money smartly. Our philosophy has been the same in the past 10 years- invest small amount of money, invest more as you gain confidence, work very closely to build a lot of value at an early stage,” Mr. Murthy told Business Insider.
 
 

Their first investment was Carwale from which they exited gaining ten times the investment, the second was Redbus from which they exited at 24 times the amount invested. The entire fund is closing now at about 4 times the investment, which is the highest return for any investment firm in India, according to Murthy. Their second fund materialized in 2010 and still has four years to go and Murthy believes that they will again return three times the investment. In a country where funds raise huge amounts of money but don’t return any, he feels that in terms of investors, nothing has changed. 

 

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“I’ve grown as an investor in the past decade with total of 55 investments, but being in a Venture Capital is the same. There’s a time limit to it. We had to exit out of Carwale and Redbus due to the size of the next round and also to show returns on the investments which means that we can’t let the money grow further,” says Mahesh who says that frugality and building a product that is build with so much effort that it doesn’t need advertising has been his goal. He feels that India has a copycat culture where most popular companies in the country are just raising a lot of money, discounting and advertising which he views as failure and says that consolidation is bound to happen in the eCommerce and Ride-hailing space for sure. Murthy believes that the American Venture funding model is flawed in India because the exits happen too quickly within 8-10 years and in India, things are still picking up. “It’s also not fair to the entrepreneur because he will think the right time to exit a company is within 6-8 years which is when the investors will exit in accordance with this model,” he says, dissatisfied with the current scenario. The solution Mahesh has been working on a long-term fund and also specialized funds which he thinks are better suited to the current emerging internet companies’ scenario. Sectors like Defence, Space and Electronics interest him for a broader long-term fund. 

 

 <div type="embedgroup"> <div type="Article" hostid="261" msid="58177182" title="Exclusive: Mahesh Murthy&amp;#39;s Unique Art of Survival- From Being a Vacuum Salesman to an Ace Investor" rank="1.0" kind="RELATED" publishDate="Apr 14, 2017, 11:04 AM" mstype="2" mssubtype="0"></div></div> He leaves us with thoughts from great change makers like <keyword id="6355315" type="PERSON" weightage="20" keywordseo="Elon-Musk">Elon Musk</keyword>, Warren Buffet and Richard Branson, Steve Jobs and <keyword id="762444" type="PERSON" weightage="20" keywordseo="Richard-Feynman">Richard Feynman</keyword> and how non-conformity changed his life and it can change yours too.

Exclusive: Mahesh Murthy thinks that the future of investing in India isn’t the current Venture Capital Model

<keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, the poster child of the Indian startup ecosystem, was devalued for the seventh time in January 2017, by <keyword id="4205639" type="UNKNOWN" weightage="20" keywordseo="fidelity-partners">Fidelity Partners</keyword>. At a $5.56 billion valuation, Flipkart’s shares were valued at $52.13 in November 2016, down by 36.1 percent from $81.55 per share as of August 2016. The domino effect hit the cab aggregator <keyword id="6354720" type="PERSON" weightage="20" keywordseo="Ola">Ola</keyword> next with the US-based investment firm <keyword id="4205636" type="UNKNOWN" weightage="20" keywordseo="vanguard-world-fund">Vanguard World Fund</keyword> marking down Ola by over 40 percent. 
 According to their regulatory filing with the <keyword id="108474" type="ORGANIZATION" weightage="20" keywordseo="US-Securities-and-Exchange-Commission">US Securities and Exchange Commission</keyword>, the current valuation for Ola is now $3 billion, with its shares dropping from $311.27 per share in the previous quarter to $182.70 apiece. During their peak, Ola had raised $500 million at a valuation of $5 billion. 
 That’s not all. According to reports, e-commerce giant <keyword id="541988" type="COMPANY" weightage="20" keywordseo="SnapDeal">Snapdeal</keyword> is reportedly looking at raising funds at a lower valuation of $4 billion. At their last fundraising round, they raised $200 million at a valuation of $6.5 billion. 
 
Valuations are normally decided according to a company’s market share, its gross margins, and its rate of growth, among other factors, but is anyone talking about the elephant in the room? Does a number decide a company’s worth or does the mettle lie someplace else? 
 
What’s The Big Deal about Valuations? 
 
While Valuations and devaluations are part of the game, they are a mix of market environment, risk appetite, a fund manager’s biases, hot new trends, fear of missing out, the multiples comparable are commanding, and of course, expected cash flows and margins. 
In 2015, we lauded the entry of Flipkart, Ola and Snapdeal in the Unicorn club. The first quarter of 2015 saw over $1.7 billion funding in start-ups and all we hear now are downturns with reality hitting the magic creatures to the ground and forcing them to compete in a horse race for fund-raising. 
 
<a href="http://www.businessinsider.in/heres-how-uber-is-letting-you-earn-from-its-platform-uberdost/articleshow/57083396.cms">ALSO READ: Here's how Uber is letting you earn from its platform 'UberDost'</a> 
 
While there were muffled concerns of profitability and unit economics, the dynamics took a harder turn when in the middle of 2016 the world economic dynamics shifted. 
 
Suddenly, the pouring funding started slowing down, news of firing rounds, internal tiffs, and investor involvement began to cloud the startup skyline. 
 
Now the lauded valuations started to seem bloated and overhyped, and the cost-cutting started and it doesn’t seem to end. 
 
 
 
 
The secret is in the Business Model 
 <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>, while digging deeper into factors ailing the startup ecosystem in India, realized that business models had to be one of the core ingredients to a startup’s success or failure. So, we got in touch with key players, notable investors and successful companies that had a say in the functions of the industry. 
 
What clearly emerged was that there were mainly three business models that most start-ups and unicorns, followed in India- 
 
1) Cut prices to gain industry share and chase profit later 
2) Set up person-to-person exchanges 
3) On-Demand Model 
 
Now we break down the models to see why Indian start-ups think they’d work and why they haven’t succeeded yet. 
 
Investors’ Point of View 
 <keyword id="262067" type="PERSON" weightage="20" keywordseo="Mahesh-Murthy">Mahesh Murthy</keyword>, Co-Partner, Seedfund, one of India’s most vocal investors told us what’s wrong with the Indian startup ecosystem,”The problem is that we are idolizing businesses that are not ‘New’. There is nothing elusive or different about the companies we look up to, they are just copycats.’’ 
 Seedfund, which is an early stage VC firm has invested in companies like Redbus.in, Chumbak, Carwale, and Voonik. “Real businesses need little or no marketing. The cost of acquiring a customer shouldn’t be higher than your investment in your product which is what is happening right now’’<keyword id="20148" type="PERSON" weightage="20" keywordseo="murthy">Murthy</keyword> comments on the viability of the business models of India’s best-known <keyword id="6362513" type="ORGANIZATION" weightage="20" keywordseo="Startups">startups</keyword>. 
 “Innovation for the sake of innovation is useless. Most consumers prefer the companies that are competitors to Flipkart, Snapdeal, and Ola and that speaks volumes. We are just looking for great service coupled with great value for money and <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">Amazon</keyword> and Uber give us that while the other companies don’t hit the mark while getting celebrity endorsements with full-page ads.’’ 
 “Rule Number 1 of business: Never lose money. Rule Number 2: Don’t forget Rule Number 1,” said <keyword id="71133" type="PERSON" weightage="20" keywordseo="Warren-Buffet">Warren Buffet</keyword>, probably the most popular investor in the world. 
 <keyword id="542474" type="PERSON" weightage="20" keywordseo="Reid-Hoffman">Reid Hoffman</keyword> from <keyword id="28120" type="CITY" weightage="20" keywordseo="Linkedin">LinkedIn</keyword> and now a VC says that as a VC, you should be able to put your money into a startup and walk away from your investment and at the most, you are best placed to understand a sector if you have built a business in it or at the very least, worked in it. For Indian start-ups, we see the opposite happening with Flipkart who recently appointed <keyword id="6379357" type="UNKNOWN" weightage="20" keywordseo="Kalyan-Krishnamurthy">Kalyan Krishnamurthy</keyword> as CEO, who is an ex-employee at Flipkart’s key investor, Tiger Global. 
 
What is a business model? 
 
A business model explains which consumer pain a startup chooses to relieve, why your solution works better than competing ones and how big a wedge a company can drive between what customers are willing to pay and the costs. 
 
Breaking down the Business Models 
 
There are broadly the following business models at play when it comes to start-ups that hold the public eye in India: 
 
1. Cut prices to gain an industry share and chase profit later: Target a huge market and sell a product at the lowest price with fast delivery and great service. As the company grows, expand the product line, negotiate volume discounts with suppliers, invest in technology, customer response time and cut waste from the operations. Then deliver the lower costs to customers in the form of lower prices. 
 
This was Amazon’s model which is still one of the fastest growing companies in India and the world. Although it was founded back in 1994, Amazon didn’t actually make a profit until 2001. Amazon has some profitable projects, but the money made from them is typically used as investments to fund other Amazon businesses and ventures. The company invests its profits in new lines of businesses and uses them to expand. In short, Amazon seems to value growth over profits. 
 
 
 
​ <keyword id="8589" type="PERSON" weightage="20" keywordseo="padmaja">Padmaja</keyword> <keyword id="980938" type="PERSON" weightage="20" keywordseo="Ruparel">Ruparel</keyword>, President, Indian Angel Network doesn’t believe in this model simply because she thinks that Indian consumers are flighty, “There is a constant need to lure the consumer to stick with you which is tricky when you’re not the only player in the market. Your focus here is on how quickly you can grow the market and not on your business strategy.’’ Ruparel believes in investing in a much more stable business model, “We are old-fashioned for sure as our focus is on businesses building a top-line and a bottom-line. We ascertain a business by unit economics and even though the cycle might be slightly longer, B2B start-ups create a sustainable business.” 
 
“The consumer is surely attuned to buying online which was their aim, but only some players will remain in this market. Consolidation is inevitable as loss-making businesses can’t stay afloat for long, but only time will tell who will remain the top dogs here,’’says Padmaja when asked about the future for consumer-centric start-ups. 
 
India’s perspective: “E-commerce companies like Snapdeal and Flipkart are following a similar model to that of Amazon in India. The difference is that Amazon can afford to lose money in India as it is profitable in other markets. The former players are just playing in India where they’re losing money trying to compete with Amazon,” comments Mahesh Murthy. 
 
2. Set up person-to-person exchanges: A house owner in a town has a huge house that has idle rooms that aren’t occupied. The young professionals living in the city need accommodation in different towns to work flexibly but they don’t want to own a house or live in expensive hotels. It seems to be working for <keyword id="719382" type="COMPANY" weightage="20" keywordseo="Airbnb">Airbnb</keyword> which doesn’t own any inventory and millions of people have taken advantage of these services, and Airbnb now has a market value estimated at $30 billion—roughly the same size as the <keyword id="183920" type="CITY" weightage="20" keywordseo="Marriott-International">Marriott International</keyword> hotel chain. 
 
Vikram Gupta, CEO, IvyCap Ventures, “India is not a mature market where you can write off $100 million checks to companies that are spearheaded by college graduates or in some cases, dropouts. The entire ecosystem is disturbed as new companies were getting funding at overhyped valuations. The market has started to finally stabilize and we see investors going back to the revenue as a yardstick for company’s growth instead of the GMV. The businesses are coming back to realistic valuations and while they might have money left in the bank, they are looking to reduce their cash burn rate.” 
 
 
 
India’s perspective: Companies like <keyword id="2808667" type="UNKNOWN" weightage="20" keywordseo="OYO">OYO</keyword> are trying to work with small hotels and guesthouses and have even leased their own properties but the burn-rate is consistent. With simplifying its business model and focusing on one aspect; people sharing their homes with people and minimal revamping, Airbnb has revolutionized how the world sees hotel accommodation forever. 
 
3. On-Demand Model: Smartphones have driven transformational shifts in how we consume goods and services, and many consumers have become acclimated to purchasing at the press of a button. The on-demand model allows a startup to leverage new technology while utilizing existing infrastructures. Another benefit lies in the use of freelance labor with its obvious advantages in cost cutting. 
 
Uber is a great example of the sharing economy where they connect the supply to the demand of taxis without investing in their own fleet. 
 
India’s perspective: <keyword id="6362049" type="UNKNOWN" weightage="20" keywordseo="Ola-Cabs">Ola Cabs</keyword> is Uber’s biggest competitor in India and while both companies burn a lot of money trying to lure customers to get into a taxi, Uber is currently the world’s most valuable startup at $69 billion. 
 
<a href="http://www.businessinsider.in/online-cab-players-in-2016-completed-nearly-half-a-billion-rides-with-250-y-o-y-growth-in-india/articleshow/57273938.cms">ALSO READ: Online cab players in 2016 completed nearly half a billion rides with 250% y-o-y growth in India</a> 
 
Winner Speak 
 V. Krishnan, Co-founder, and Director of <keyword id="1675768" type="UNKNOWN" weightage="20" keywordseo="Justdial-Ltd">JustDial Ltd</keyword> who likes to call his company an ‘18-year old startup’ says that for a successful business you don’t need an extraordinary idea, “The problem with start-ups today is that they don’t focus on profitability. To create a profitable business, you need extraordinary execution, not an idea. Giving money to people to use your services doesn’t make sense. The Indian customers are not loyal to brands, but to offers. Our goal was to create a world-class business and a world-class company.’’ 
 
For the first ten years of JustDial’s existence, the company didn’t raise any funding. The company ran on a shoe-string budget and used its own money to survive. In 2006, when internet penetration and broadband gained traction in India, the company was ready with its fully functional website to complement its telecom services. From 2-3% internet users to now 85% internet users, the company has grown to 200 Cr web searches annually, without any cashback or incentives. The company is probably one of the rarely profitable internet companies in the country today. 
 
<a href="http://www.businessinsider.in/65-of-start-ups-feel-indian-startup-eco-system-may-be-in-a-tech-bubble-report/articleshow/57205211.cms">ALSO READ: 65% of start-ups feel Indian startup eco-system may be in a tech bubble: Report</a> 
 
“The core business of start-ups isn’t ready but there is marketing happening. India is going to be giving you a lot of opportunities. Everyone wants to create a company, raise a great valuation and sell it off to do something bigger; the attitude is wrong," he signs off. 
​ 
Business Insider got in touch with Flipkart, Ola, Snapdeal, and Uber for this story but the companies chose to not comment on the same. 
 
​ 
 
Business Insider’s Take 
 
While popular Indian start-ups struggle to survive without additional funding coming in, we see some internet companies like JustDial and BookMyShow staying afloat, without investor-intervention. 
 
When it comes to businesses and business models, investors and successful companies agree that the tried and tested works; build a business with a strong product that you can alter as technology develops. The business of losing money can only take you so far if you don’t put it to good use. 
 
There’s a difference between investment into a product and burning money, and the start-ups better realize that before they get acquired or relinquished by the players who created the game that they’re set to lose. 
 
The market is big enough for companies that create value for customers not just for start-ups that create customers; the difference is everything. 
 
(Graphics: All figures in INR crores for the financial year 2015- 2016. Source: <a href="http://www.livemint.com/Companies/vtqiTC9VgJgnUfOAH2QdiL/Flipkart-still-Indias-top-startup.html">Mint Research</a>) 
 
**For Oyo, the result is from Apr-Dec 2015. 
*BookMyShow is the only company mentioned that has profits.

BI Investigation: Business models akin to Amazon and
Uber’s aren’t working for Indian startups

For an industry that has already faced the brunt of <a href="http://www.businessinsider.in/marutisuzuki-swift-2017-has-been-creatively-copied-from-at-least-5-different-cars-heres-the-proof/articleshow/56315268.cms">demonetization</a> and now facing ban on sale of 2000+ cc powered cars, it’s not easy to pull up its socks and perform out of the blue overnight. <keyword id="51958" type="ENTERTAINMENT" weightage="20" keywordseo="YES">Yes</keyword>, we are talking about India’s automobile industry. The importance of this industry cannot just be overlooked. Based on present statistics, this sector contributes 7.1% of overall GDP and almost 49% of the manufacturing sector GDP. One of the most important employment generators in India, <a href="http://www.businessinsider.in/marutisuzuki-swift-2017-has-been-creatively-copied-from-at-least-5-different-cars-heres-the-proof/articleshow/56315268.cms">automobile sector</a> already has 32 million people working directly or indirectly. There are numerous factors that tend to be speed breakers of the growth of this industry. Among those are India’s stretched monsoon season, limited rural consumption, commodity prices and t<a href="http://www.businessinsider.in/marutisuzuki-swift-2017-has-been-creatively-copied-from-at-least-5-different-cars-heres-the-proof/articleshow/56315268.cms">ax and regulatory policies of the government.</a> 
 
Will the Budget of 2017 will be able to address the major bumps on the growth path? 
 <keyword id="4075000" type="UNKNOWN" weightage="20" keywordseo="dinesh-supekar">Dinesh Supekar</keyword> of <keyword id="148915" type="COMPANY" weightage="20" keywordseo="PWC-India">PwC India</keyword>, a multinational professional services network, told <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword>, “Since the government wants to keep a check on pollution along with the growth of the sector, it will be better if some regulations can be made to scrap off old vehicles plying on the road. An incentive based regulation is best for it. This will curb pollution drastically. New cars are mostly fitted with technologies that are at par with emission norms. Putting an end to plying of old cars will benefit in two ways. Firstly pollution will come down and along with that demand for new cars created. This will boost sell of new cars keeping a check on environment.” 
 “The shadow of demonetisation has affected car sales, much more so in the premium and luxury segments than the mass market ones. The upcoming budget can bring in relief for the automotive sector with further rationalisation of income taxes which would increase the disposable income in the hands of tax payers, especially the middle class. Also continued investment into road and city infrastructure is much needed, which will not only help car owners but is also a massive employment generator. Clarity on GST implementation and overall stable policy outlook will bring in the much needed optimism and positivity into the economy in general. People will be more prone to spending on larger items like cars when they have faith in long-term sustainable growth rather than on-the-spot announcements like the demonetisation one,” said <keyword id="3054707" type="UNKNOWN" weightage="20" keywordseo="Dhruv-Chopra">Dhruv Chopra</keyword>, Chief Marketing officer, <keyword id="817470" type="COMPANY" weightage="20" keywordseo="Carwale">Carwale</keyword>, an authoritative source of new car pricing. 
 
Another issue that this year’s budget needs to address is car hike. Already <a href="http://www.businessinsider.in/marutisuzuki-swift-2017-has-been-creatively-copied-from-at-least-5-different-cars-heres-the-proof/articleshow/56315268.cms">Maruti Suzuki</a> and <keyword id="596" type="CITY" weightage="20" keywordseo="Hyundai">Hyundai</keyword> have announced that they would be increasing the price of cars produced this year. “India is the third largest automobile market in the world, yet only 4% of the households have a car and 25% of the households have a two-wheeler and local public transportation is limited only to the metros. I really hope the budget actually paves way for millions of Indians to achieve the dream of owning a vehicle, going to a good school for education and facilitates transport independence,” said <keyword id="195858" type="PERSON" weightage="20" keywordseo="Sandeep-Aggarwal">Sandeep Aggarwal</keyword>, founder &amp; CEO of Droom that deals in old as well as new car. 
 Shubh Bansal, Co-founder of <keyword id="2877989" type="UNKNOWN" weightage="20" keywordseo="Truebil">Truebil</keyword>, a marketplace for pre-owned cars told Business Insider, “Scheme for the exchange of cars older than 10 years will be good. Apart from that implementation of GST and low tax slabs, tax rebate not just for consumers but also for <a href="http://www.businessinsider.in/marutisuzuki-swift-2017-has-been-creatively-copied-from-at-least-5-different-cars-heres-the-proof/articleshow/56315268.cms">NBFC</a>s providing loans to car buyers, increase in disposable income, excise duty reduction would boost the automobile sector.”

This budget may help every Indian to own a car? Here’s how

In a fresh round of funding led by <keyword id="2604975" type="UNKNOWN" weightage="20" keywordseo="Hillhouse-Capital">Hillhouse Capital</keyword> and <keyword id="2524284" type="COMPANY" weightage="20" keywordseo="Tybourne-Capital">Tybourne Capital</keyword>, auto classifieds website <keyword id="1945738" type="UNKNOWN" weightage="20" keywordseo="Cardekho">CarDekho</keyword>.com has raised $50 million (about Rs 307 crore). CarDekho’s existing investor Sequoia Capital, which currently has a 20% stake in the company, also participated in the funding process. 
 
The seven year-old company, which sells both used and new cars on its platform, has now joined the club of Indian consumer Internet companies valued at Rs 1,000 crore or more. 
 
"We will be using the proceeds primarily towards brand building and marketing. We will consider acquisitions as well, and have held talks with other start-ups that we feel can enhance our technology platform," said Amit Jain, co-founder and chief executive officer (CEO) at CarDekho. CarDekho’s chief competitors are Tiger Global, <keyword id="1980082" type="UNKNOWN" weightage="20" keywordseo="Cartrade">CarTrade</keyword>.com and <keyword id="817470" type="COMPANY" weightage="20" keywordseo="Carwale">Carwale</keyword>.com. It also faces competition from classifieds websites like OLX and eBay-backed Quikr. 
 
"Given the adoption of the Internet in India, especially through mobile, we're targeting revenue of Rs 500-600 crore, and a billion dollar valuation over the next four to five years," said Jain. 
 
A number of global hedge funds have been pumping cash into the country’s consumer Internet businesses for the last two years.

CarDekho.com Raises Fresh Funds Worth Rs 307 Crore

Online auto classified platform <keyword id="1980082" type="PERSON" weightage="20" keywordseo="Cartrade">CarTrade</keyword> Tech on Friday said it has raised Rs 900 crore from anchor investors ahead of its initial public offering, which opens on Monday. The company has decided to allocate 55,59,664 equity shares to anchor investors at Rs 1,618 apiece, valuing the transaction size to Rs 899.55 crore, according to a circular uploaded on the BSE website. Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF are among the anchor investors. The initial share-sale will be entirely an offer for sale (<keyword id="883402" type="ORGANIZATION" weightage="20" keywordseo="OFS">OFS</keyword>) of 18,532,216 equity shares. Among the investors participating in the OFS are -- CMDB II (22.64 lakh equity shares), Highdell Investment Ltd (84.09 lakh shares), Macritchie Investments Pte Ltd (50.76 lakh shares), and <keyword id="11723135" type="UNKNOWN" weightage="20" keywordseo="springfield-venture-international">Springfield Venture International</keyword> (17.65 lakh shares). Currently, CMDB II holds 11.93 per cent stake in CarTrade, Highdell Investment owns 34.44 per cent stake, MacRitche Investment has 26.48 per cent shareholding, and Springfield Venture International holds 7.09 per cent stake in the company. The public issue, with a price band of Rs 1,585-1,618 a share, will open for subscription on August 9 and conclude on August 11. At the upper end of the price band, the <keyword id="6354763" type="UNKNOWN" weightage="20" keywordseo="ipo">IPO</keyword> is expected to mobilise Rs 2,998.51 crore. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors. Founded in 2009, CarTrade is backed by marquee investors -- <keyword id="6402698" type="UNKNOWN" weightage="20" keywordseo="warburg-pincus">Warburg Pincus</keyword>, Temasek, JPMorgan and March Capital. The CarTrade platform allows customers to buy and sell used cars as well as new cars. The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands -- CarWale, CarTrade, <keyword id="209119" type="COMPANY" weightage="20" keywordseo="Shriram-Automall">Shriram Automall</keyword>, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. The company's consumer platforms i.e. CarWale, CarTrade and BikeWale, collectively get 3.2 crore average unique visitors every month (during the three-month period ending March 31, 2021), and Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY21. The company generates revenues from commission and fees from auctions and re-marketing services, online advertising solutions, lead generation, technology-based services to OEMs, dealers, banks and other financial institutions, and inspection and valuation services. Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and <keyword id="6600258" type="UNKNOWN" weightage="20" keywordseo="Nomura-Financial-Advisory">Nomura Financial Advisory</keyword> and Securities (India) Private Limited are the investment bankers to the issue. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/krsnaa-diagnostics-ipo-open-today-check-out-how-to-apply/articleshow/85017014.cms">Krsnaa Diagnostics IPO opens—here is all you need to know</a> <a href="https://www.businessinsider.in/business/startups/news/these-are-some-of-the-highest-paid-founders-of-indian-startups-tapping-capital-markets-this-year/slidelist/85005261.cms">These are some of the highest paid founders of Indian startups tapping capital markets this year</a>

CarTrade raises ₹900 crore from anchor investors ahead of its IPO, issue opens on Monday

<ul><li><keyword id="4306161" type="General" weightage="20" keywordseo="cars24" source="Orion">Cars24</keyword> has raised a funding of $450 million from marquee investors of the startup ecosystem.</li><li>It is reportedly valued at $1.75 billion, followed by Droom with a $1.2 billion valuation.</li><li><keyword id="1980082" type="General" weightage="20" keywordseo="cartrade" source="Orion">CarTrade</keyword>, despite being profitable, has not been able to cross the billion dollar mark.</li></ul>Gurugram-based used cars marketplace Cars24 became a unicorn last year and raised some more money now despite piling up losses. Meanwhile, its competitor CarTrade Technologies, which is profitable and listed on the stock exchanges since August, continues to be valued at less than half the estimated valuation of Cars24. <div type="image" title="Loss-making Cars24 is worth more than a profitable CarTrade ⁠— here’s why" msid="86158018" hostid="261"></div> Analysts say this could have to do with who’s investing in both companies and the latter’s international presence. Nearly three weeks after its listing, CarTrade remains an underperformer even in the stock market whereas, last week, Cars24 raised more funding and raised its valuation to somewhere between $1.72 billion to $1.75 billion. On September 10, <a href="https://entrackr.com/2021/09/exclusive-cars24-raises-259-mn-at-around-1-75-bn-valuation/" data-type="tilCustomLink">eight marquee </a>investors of the startup ecosystem pumped in $258.6 million into Cars24, which had turned into a unicorn last year in November, after raising<a href="https://www.businessinsider.in/business/startups/news/cars24-is-indias-latest-unicorn-as-it-raises-200-million-from-dst-global-and-existing-investors/articleshow/79388631.cms"> $200 million</a> in a round led by DST Global. A unicorn, in startup purlance, is a company valued over a billion dollars. Cars24 was the first startup to cross the threshold in this segment of its operation. Later it was reported that the <a href="https://www.cars24.com/blog/cars24-raisesi-450-million-nearly-doubles-its-valuation-to-1-84-billion/" data-type="tilCustomLink">round aggregated up to $450 million</a>, of which $340 milion was equity investment while $110 million was raised in debt. The company was valued at 1.84 billion post this round. It is followed by Droom, which was recently<a href="https://www.businessinsider.in/business/startups/news/droom-automobile-marketplace-raises-200-million-in-a-pre-ipo-round-at-unicorn-valuation/articleshow/84818567.cms"> valued</a> at $1.2 billion. Meanwhile, CarDekho is in advanced stages of talks to close a funding round with over $1 billion valuation. These were the investors who bet big bucks in Car24’s latest round. Kunal Khatter, managing partner at mobility-focused investment firm AdvantEdge, told Business Insider that private investors and retail investors value companies with different yardsticks. “Analysts in the public market are far more stringent on how they value and give recommendations for buy or sell, because they are answerable to the public.. On the private side, valuation is an outcome of what an incoming institutional investor thinks the company is going to be worth…” Khatter added. Ankur Bansal, co-founder of investment firm BlackSoil noted that the difference in revenue and scale of the companies has also resulted in the difference of valuations. However, valuations of public listed companies are considered as a benchmark because each analyst or firm can have different methods to value a business. Point of difference between CarTrade and Cars24 (Cars24 Services Private Limited). <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Metrics </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CarTrade </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cars24 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue (in FY20) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹318.4 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,059 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit after tax/(Loss) (FY20) </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹31.2 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(₹277.18 crore) </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">300 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">150 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Countries </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">India, Australia, UAE </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Founded by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal and Mehul Agrawal, Cars24 allows customers to sell their old cars through their omnichannel network. A consumer can simply book an appointment with any of the Cars24 branches, visit the branch and sell a car in a single visit. The company has recently expanded to Australia and UAE. AdvantEdge’ Khatter also noted that these two businesses, Cars24 and CarTrade, may look similar on the outside but are in fact very different at their core which has led to difference in the valuation. CarTrade also owns other platforms like CarTrade, Carwale, CarTradeExchange, Shriram Automall, Adroit Auto, Auto Biz, and BikeWale. Majority of CarTrade’s valuation comes from its three assets: Carwale, commercial trucks platform Shriram Automall and inspection business Adroit Auto, Khatter added. The whole reason why CarTrade is profitable is because of Carwale, but again it's a classification that allows you to compare prices. The other two businesses are profitable too, but don’t generate a lot of revenue, Khatter said. “They are market leaders in all these spaces, but the problem with market leaders is that there is not much room to grow,” he said. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CarTrade </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cars24 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New automobile sales </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Used car sales </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial vehicles, farm and construction equipment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Online auction platform </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vehicles financing </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Car inspection </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Cars24 has also positioned itself as US-based Carvana, an online dealer of pre-owned cars, which has a market cap of $27.7 billion. “This is why foreign investors are more comfortable giving that sort of premium to Cars24,” Khatter added. On the other hand, CarTrade doesn’t have any international presence. “The original CarTrade was a business-to-business car auction platform, which banks used to liquidate assets. That’s not a real value generator because the margin is very low. They are the market leaders in that, yes, but it's a very limited tank,” he added. ALSO WATCH: Droom founder Sandeep Aggarwal's interaction with Business Insider, where he talks about the company's surging valuation, upcoming IPO and expansion plans. <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[ ]]></cdata></div> Update: Cars24 on September 20 announced that it raised $450 million, at a valuation of $1.85 billion. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/reliance-infra-reliance-industries-zomato-and-other-top-stocks-to-watch-out-for-on-september-13/slidelist/86156619.cms">Reliance Infra, Reliance Industries, Zomato and other top stocks to watch out for on September 13</a> <a href="https://www.businessinsider.in/international/news/the-first-transgender-person-elected-bishop-in-a-major-christian-church-wants-to-inspire-hope-and-expand-peoples-minds-about-trans-people/articleshow/83528986.cms">The first transgender bishop in a major Christian church wants to inspire hope and expand people's minds about trans people</a> <a href="https://www.businessinsider.in/entertainment/news/superhero-movies-have-a-deep-connection-to-9/11-and-it-shows-how-nyc-and-disney-capitalized-on-our-collective-grief/articleshow/86116230.cms">Superhero movies have a deep connection to 9/11, and it shows how NYC and Disney capitalized on our collective grief</a>

Loss-making Cars24 is worth more than a profitable CarTrade ⁠— here’s why

<ul><li>Shares of <keyword id="11901692" type="General" weightage="20" keywordseo="cartrade-tech-ipo" source="Orion">CarTrade Tech IPO</keyword> got listed at 1.12% discount from its price band of ₹1585-1618 per share.</li><li>The IPO was subscribed 20.29 times on the last day of the bidding.</li><li>The market capitalisation of the company stood at ₹7,333.45 crore.</li></ul>Shares of CarTrade Tech made a weak listing on the National Stock Exchange (NSE) and BSE at a 1.12% discount from its issue price of ₹1585-1618 per share. Post listing, the market capitalisation of the company stood at ₹7,333.45 crore, according to BSE data. The shares of CarTrade Tech were trading at ₹1556, 3% higher at 10.01 a.m., on August 20. The market sentiment also looked dull as benchmark indices Sensex and Nifty 50 were trading lower. The grey market price of the stock had suggested around 8-10% premium over the upper price band of ₹1618. The IPO received good demand from investors on the last day of the initial public offering (IPO) bidding process as the issue size was subscribed 20.29 times on the last day. It received bids for 26.31 crore shares as against 1.29 crore shares on offer. The issue was open for subscription between August 9 and August 11. The company is a 12-year old startup that operates online platforms like CarWale, CarTrade, BikeWale, CarTradeExchange and AutoBiz for users interested in buying and selling new and used vehicles. “CarTrade is an electronic exchange focusing on the auto sector and thus there is no peer company having similar business operations. At a higher price band...we feel it is attractive considering its scalable business model, profitable operations and business growth opportunities in the auto sector value chain,” said the report by Choice Broking . The company was looking to raise ₹3,000 crore through the listing. The company’s revenue from operations have increased at a compound annual growth rate (CAGR) rate of 26.4% over FY18-FY21. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/liquor-companies-profit-rise-on-the-back-of-rising-sales-in-spirits-segment-whiskey-rum-gin-tequila-but-beer-sales-fall/articleshow/85468879.cms">Indians drank less beer during the pandemic but liquor companies are still high on profits ⁠— here’s why</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/agritech-startup-agnext-raises-21-million/articleshow/85477895.cms">Agritech startup AgNext raises $21 million to expand into Middle East, Europe and Asia</a>

CarTrade Tech gets a dull response at the exchanges, shares list at 1.12% discount

<ul><li><keyword id="11240103" type="UNKNOWN" weightage="20" keywordseo="cartrade-ipo">CarTrade IPO</keyword> offers an attractive opportunity to invest in a new age business, say analysts.</li><li>CarTrade IPO opens on August 9 and will close on August 11.</li><li>Online auto classifieds platform looks to raise ₹2,999 crore through the issue.</li><li>It has already raised ₹900 crore from anchor investors ahead of its initial public offering (IPO).</li></ul>CarTrade is the latest one in the long line of tech startups tapping the public market with initial public offerings (IPO). Unlike Zomato, this would be the first profitable startup to hit the stock market since EaseMyTrip. The company is a 12-year old startup that operates online platforms like CarWale, CarTrade, BikeWale, CarTradeExchange and AutoBiz for users interested in buying and selling new and used vehicles. The IPO of the company opens Monday and closes on August 11. It is looking to raise around ₹3,000 crore through the public listing. Let us see what the analysts have to say about the company’s IPO: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Broking firm </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Nirmal Bang </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Choice Broking </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">ICICIdirect </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Investmentz </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe </td></tr></tbody><tbody></tbody><tbody></tbody></table> CarTrade is a profitable player in India and one of the few players internationally in the vehicle platform space. Further, with funds of ₹668 crore in its balance sheet, CarTrade is well positioned and plans to capture adjacent business opportunities such as insurance, financing, servicing of vehicles, accessories and refurbishment and sale of cars. The public issue of the company is opening with a price band of ₹1,585-1,618 per share. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors. Analysts at Choice Broking have similar opinions about the company. “CarTrade is an electronic exchange focusing on auto sector and thus there is no peer company having similar business operations. At a higher price band...we feel it is attractive considering its scalable business model, profitable operations and business growth opportunities in the auto sector value chain,” said the report. The company’s revenue from operations have increased at a compound annual growth rate (CAGR) rate of 26.4% over FY18-FY21. CarTrade offers a unique play on rising digitisation of new and pre-owned vehicle translation value chain/ecosystem, said a report by ICICIdirect. “We assign ‘subscribe’ rating to the issue for listing gains. Long term wealth generation at CarTrade Tech will be a function of scalability, relevance and journey towards healthier return ratios,” said the report by ICICIdirect. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Profit </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹101.07 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 31.3 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 25.9 crore </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 281.5 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 318.4 crore </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 266.8 crore </td></tr></tbody><tbody></tbody><tbody></tbody></table> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/freshtohome-and-bluestone-backer-iron-pillar-is-planning-to-bring-assets-worth-1-billion-under-management/articleshow/85161486.cms">FreshtoHome and BlueStone-backer Iron Pillar is planning to bring assets worth $1 billion under management</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/news/nasa-wants-paid-volunteers-to-spend-a-year-living-in-a-3d-printed-martian-habitat-in-texas-where-they-will-carry-out-spacewalks-and-research-using-vr-tech/articleshow/85149673.cms">NASA wants paid volunteers to spend a year living in a 3D-printed Martian habitat in Texas, where they will carry out spacewalks and research using VR tech</a>

CarTrade IPO ⁠— the share sale by this profitable tech startup gets a unanimous call for ‘subscribe’

<ul><li><keyword id="20509" type="General" weightage="20" keywordseo="chalo" source="Orion">Chalo</keyword> operates nearly 15,000 buses across 31 cities — including Karnataka, Kerala, Uttar Pradesh, and Bihar.</li><li>The acquisition of <keyword id="3009822" type="General" weightage="20" keywordseo="shuttl" source="Orion">Shuttl</keyword> will allow Chalo to expand its presence in many parts of the country including metro cities.</li><li>Shuttl had raised $122 million from SIG Investments, <keyword id="18635" type="General" weightage="20" keywordseo="Amazon" source="Orion">Amazon</keyword>, Dentsu, Sequoia Capital and others.</li></ul>Amazon-backed app-based office shuttle service Shuttl — which announced closure of its operations in July this year — has been acquired by bus tracking app Chalo. Financial terms of the transaction have not been disclosed yet. The seven-year-old Chalo was founded by Vinayak Bhavnani and carwale.com’s cofounder Mohit Dubey. The company digitises buses by adding bus tracking services as well as contactless payments solutions. It operates nearly 15,000 buses across 31 cities — including Karnataka, Kerala, Uttar Pradesh, and Bihar. The company claims to complete 20 million rides on a monthly basis. Chalo has raised $47 million to date, with $40 million coming in Series C round raised last month. It is backed by former Google India executive Amit Singhal, Lightrock, Raine Ventures, WaterBridge Ventures and more. The acquisition of Shuttl will allow Chalo to expand its presence in many parts of the country including metro cities, Chalo’s founder and chief executive Mohit Dubey said. Chalo also believes that the acquisition could help the company broaden its technology as well as product offerings, and look at overseas expansion. “Chalo and Shuttl were already the largest brands in their space. Together we now fulfil more than 25 million rides per month, and aim for international expansion along with further growth in India as well,” Dubey said. Shuttl would continue to use the brand name ‘Shuttl’ even after the acquisition. The company’s current team, including the core team, will continue with their current roles. Why did Shuttl sell off? Shuttl was founded by Amit Singh and Deepanshu Malviya in 2015 and was the biggest private player in the intra-city bus services. The company specially focused on office commute and has garnered the interest of many investors since its inception. It has raised about $122 million (₹908 crore, at current conversion rate) to date from investors like Hong Kong-based venture capital firm SIG Investments, Amazon, Dentsu, Trifecta Capital, Sequoia Capital, Lightspeed India Partners, and Times Internet. It claimed to be serving over 100,000 rides daily by running 2000 buses on an aggregator model across 150+ routes in the above-mentioned six cities. However, the company’s failure to pivot and cash burn rate is being cited as the reason for this company’s untimely shut down. <div type="image" title="Chalo acquires Amazon-backed office shuttle service Shuttl, four months after its shutdown" msid="87278410" hostid="261"></div> The company’s expenditure in FY20 alone was more than what the company has earned from operations since its inception. An investor, on the condition of anonymity, had previously told Business Insider that Shuttl can be absorbed by or merged into other mobility businesses to create a larger offering. “While for the buses, I don’t see an offering as such, but for the team, I see offerings in a Vogo, Rapido or in a Chalo. These are the outcomes I see. I see more of a startup merger than a traditional company buying it out,” the person added. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/failure-to-pivot-covid-19-blues-force-amazon-backed-shuttl-to-look-for-a-buyer/articleshow/84056797.cms">Failure to pivot, COVID-19 blues force Amazon-backed Shuttl to look for a buyer</a> <a href="https://www.businessinsider.in/business/news/ipo-bound-nykaa-plans-to-set-up-more-retail-stores-and-warehouse-for-ecommerce/articleshow/87274137.cms">Nykaa plans to go ‘aggressive’ with its retail store network, a vertical that contributes less than 10% to its revenue</a> <a href="https://www.businessinsider.in/stock-market/news/tech-mahindra-irctc-tata-power-are-bucking-the-trend-in-volatile-market/slidelist/87271983.cms">Tech Mahindra flies on strong revenue, Tata Power excites investors with EV push and IRCTC back on track after a lull week</a>

Amazon-backed office shuttle service Shuttl finds a saviour in Chalo

<ul><li>Hyundai reported a 23.6% jump in its domestic sales in September </li><li>From Hyundai Elantra to Hyundai Santro— Hyundai Motors India has a range of cars listed for discounts. </li><li>The company is offering hefty discount offers up to ₹1 lakh in October 2020. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>India’s auto industry is witnessing the signs of a rebound, with most companies reporting substantial sales numbers in September. Hyundai Motors India kept the pace as well — the company reported a 23.6% jump in its domestic sales in September. And, now it is betting big as the festive season is around the corner. The company is all set to woo customers with hefty discount offers up to ₹1 lakh in October. From Hyundai Elantra to Hyundai Santro— Hyundai Motors India has a range of cars listed for discounts. At Business Insider, we have collated the list of discounts available on Hyundai cars for Indian customers. Here’s a list of discounts available on Hyundai cars in October 2020: <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Car </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cash Discount </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> Exchange Bonus </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Corporate Discount </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Elantra </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹70,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹30,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹0 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Elite i20 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹50,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹20,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Grand i10 Nios </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5,000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Grand i10 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹40,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Aura </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5000 </td></tr><tr><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyundai Santro </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹25,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹15,000 </td><td style="border-left:solid #000000 0.9907650000000001pt;border-right:solid #000000 0.9907650000000001pt;border-bottom:solid #000000 0.9907650000000001pt;border-top:solid #000000 0.9907650000000001pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5000 </td></tr></tbody></table>Source: <a href="https://www.carwale.com/news/discounts-of-up-to-rs-75000-on-hyundai-elantra-elite-i20-and-grand-i10-in-october/" data-type="tilCustomLink">Carwale</a> SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/gst-council-and-states-fail-to-reach-consensus-on-compensation-cess-no-dispute-we-may-have-differences-says-sitharaman/articleshow/78624857.cms">GST council and states fail to reach consensus on compensation cess — 'No dispute, we may have differences,' says Sitharaman</a> <a href="https://www.businessinsider.in/stock-market/news/banking-stocks-like-sbi-hdfc-axis-icici-and-other-share-price-in-the-stock-market-ahead-of-the-moratorium-verdict/articleshow/78633357.cms">SBI, HDFC Bank, Axis Bank and other bank stocks tread caution as they wait with bated breath for Supreme Court verdict on moratorium</a>

From Elantra to Santro and i10 to i20 — Hyundai is offering discounts up to ₹1 lakh on its cars

<keyword id="1980082" type="UNKNOWN" weightage="20" keywordseo="Cartrade">CarTrade</keyword>, India’s leading online automobile classifieds platform, has raised USD 55 million led by <keyword id="6367519" type="PERSON" weightage="20" keywordseo="Temasek">Temasek</keyword>, an investment company based in <keyword id="6356662" type="COUNTRY" weightage="20" keywordseo="Singapore">Singapore</keyword>, alongside a large US family office. This injection of capital will be used to support CarTrade’s growth plans through acquisitions, expansion into new areas such as auto <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">finance</keyword> and to further sharpen CarTrade’s services to consumers, dealers and OEMs. 
 
Following the merger of CarTrade with Carwale in January last year, CarTrade is India’s largest auto classifieds platform. The combined company has about 15 million unique customers per month, a leadership in both used and new cars and partner with approximately 8,000 new and used car dealer partners. The platforms list more than 200,000 used cars for sale and auctions over 200,000 vehicles to the wholesale market every year. 
 
“CarTrade is on a rapid growth trajectory. The funds raised will be used to drive growth through continued focus on strengthening our dealer and customer services and evaluating potential acquisitions. CarTrade is aggressively looking at the market for used car finance withless then 8% of used cars sold being financed through an organized financier. To address this opportunity CarTrade Finance was recently launched with the aim of financing the inventory for car dealers and to consumers who wish to buy used cars,” Vinay Sanghi, Founder and Chief Executive Officer, CarTrade said in a statement. 
 Existing investors in CarTrade include <keyword id="6402698" type="COMPANY" weightage="20" keywordseo="Warburg-Pincus">Warburg Pincus</keyword>, Temasek, JP Morgan and March Capital.

CarTrade raises US$55 millionto drive growth in online
automobile classifieds

<ul><li><keyword id="1945738" type="PERSON" weightage="20" keywordseo="Cardekho">CarDekho</keyword> reported a 62% growth in its revenue to Rs 260 crore in the year ending March 2019, despite the major slumps in auto industry.</li><li><keyword id="250518" type="PERSON" weightage="20" keywordseo="Gaurav-Mehta">Gaurav Mehta</keyword>, Chief Marketing Officer, CarDekho says the major driver of this growth was used-car segment, which helped it grow by 264%, backed by strong some ROI-driven marketing initiatives.</li><li>The company also increased its marketing monnies by 150% as it turned its focus back to offline marketing after a four-year gap.</li></ul>The Google-backed auto-classifieds portal, CarDekho has had a good year so far. Earlier this year, the platform reported a 62% growth in its revenue to Rs 260 crore in the year ending March 2019. This performance came on the back of a strong growth witnessed by its used-car segment. CarDekho achieved this growth at a time when the auto sector has been facing one of its worst slumps in years. However, CarDekho believes that its focus on understanding that every consumer has a unique need and addressing those needs with a 360 degree approach has helped them stay on track, in terms of growth. We recently caught up with Gaurav Mehta, Chief Marketing Officer, CarDekho Group who walked us through the platform’s growth story so far, and its future plans to retain its growth. Edited excerpts: In a year when the auto industry is struggling, you have been able to post impressive growth figures. How have you achieved this? There's a widespread belief that when the times get tough, which the auto sector is facing right now, one should turn to more ROI-led and measurable methods of marketing. While the auto industry is facing some headwinds, it’s not like the entire marketing monies have fallen out of the system. They continue to spend with us in ROI-inductive methods. And that’s what’s led to a 44% growth for our new car’s division for the first quarter of the financial year. Also, last year, our used car businesses started to come together as an ecosystem, which has led to the immense growth we saw in the first quarter of this year. We grew upwards of 264% because used cars as an industry hasn't slowed down. People are more open to buying used cars now, the Tier II-Tier III demands are picking up and it’s becoming more structured and digitized. The company recorded a massive revenue growth of 92% in its overall business compared to the same quarter last year. From an organization perspective, what have you done differently that has led to this growth? Over the years, with the use of our content and marketing, we’ve become good acquiring users at a fairly reasonable cost. Because of our product experience and content play, people stick around for a long time, and they complete their journeys online. And on the back of an interested audience in automobile, we were able to come up with options like car insurance and car finances. These small steps that we started some years back have become sizable over the last 12 months. The biggest problem for any digital player is to get a sticky audience at a nominal cost. That’s where upfront costs in marketing become high but we’ve been good at it. With 41 million sessions on CarDekho itself, August was our highest-ever traffic and this was primarily driven by great SEO, content and performance marketing. Secondly, we consciously wanted to work across the extended industry. We work very closely with the BFSI sector for loans and insurance and with used car dealers. Getting into a tech integration with a bank or insurance player is not as easy as it sounds because we have to maintain gold standard levels for data security, SLAs etc. So we had to work on a lot of issues to work with the larger ecosystem. Work in the last 3-4 years has led us to this place where we are seeing this kind of growth coming in, despite the headwinds. It is important to win your consumer’s trust in the segment you function in. How have you built that trust? Cars are a high-involvement purchase decision. While buying a car will take about three months, even buying a two-wheeler takes about 15 days, because people research a lot. And that's where our content play becomes superbly important. CarDekho group and our chief editor believe that the editorial ethos and integrity cannot be compromised upon. Our editorial ethos is that we’ll help our consumers find the right car for their needs. We don't believe there's a bad car, but that there’s a right car for every person and that's how our content play completely shifted two years back. Now, people are getting their answers and they knew we are impartial and completely unbiased. Secondly, people drop leads on our platform and want us to put them in touch with different dealers from whom they can buy cars. We’re very cognizant of the fact that this is a big responsibility, so we only match them with dealers that they want to be matched with. Thirdly, because of the loan and insurance pieces, a lot of financial data flows through our system. The payouts, the data security are all imperative for us to be a trusted ecosystem. These three things have helped our consumers put their complete trust in us. From being an online entity to moving offline, how did that progression happen? There’s a segment of customers and who are convenience seekers, which is where this model (<keyword id="8180462" type="UNKNOWN" weightage="20" keywordseo="CarDekho-Gaadi-Stores">CarDekho Gaadi Stores</keyword>) works well because you can go and sell your car within two hours without any problems &amp; with transfer of documents. We are currently present in 15 cities with 56 stores and within seven months of operation, we’re number two in the market. We’ve received a fairly strong traction because we understand that different users have different need gaps. So while the classified takes care of a certain kind of user, the Gaadi store takes care of another kind of user. We're just trying to map our proposition as per the needs in the market. How many stores do you plan to open by the end of this financial year? If we're lucky, it will definitely be above 150 stores in about 27-28 cities. How has CarDekho as a platform evolved over the years? Ours is one of the few big digital sectors that got consolidated fairly early. We acquired Gaadi and ZigWheels and CarTrade and CarWale came together. And for some time, these were the only two big auto-tech companies. However, with time more players started entering the category and more business models started coming in. But when you have a large number of interested users, you can open up the whole ecosystem fairly rapidly. When we acquired ZigWheels, it combined with BikeDekho to become the largest destination for two-wheelers, just like CarDekho and ZigWheels together became the largest four-wheeler ecosystem in the country. Then we pivoted towards the Gaadi stores and there’s a lot of B2B play. We issue almost 55,000 auto insurance policies per month, from a B2B perspective. And that's a very large number. It all depends on the goal of keeping the consumer funnel healthy and engaged. For the financial year ending March 2019, CarDekho posted revenues of Rs 260 crore, a 62% increase. Do you have any target for yourself for the next financial year? We are fairly confident we will be growing by about 70-80% over our last year’s numbers. You’ve come out with a TVC this year promoting the Gaadi stores. What kind of increase has your marketing spends seen this year? We came back to offline marketing (TV) in March 2018, after a four-year gap. So there’s going to be an increase in marketing budget because of the offline marketing to the tune of about 150%. Going ahead, what will be your marketing strategy? The current size of the ecosystem gives us very strong numbers where 90% of all car-buying audience in the country goes through us. But initiatives like the Gaadi business model, or any other product that we might launch in the future, will require consumer behavior shifts and education and that's where a lot of our marketing investments will go. At some point, two-wheelers will become an interesting play because they aren’t as penetrated as cars are. There are about 18 million two-wheeler buyers in the country, and around 3.3-3.5 million new and 4 million used car buyers. This together forms the personal vehicle buyer segment. So there are a total of about 25 million people who have either bought a used car, new car or a two-wheeler. Two-wheeler is a larger number, more of a Tier II, Tier III, smaller town phenomena. That might be a big growth for us in the future. Our task would be to become the first digital medium of choice for this audience, when they look for two-wheelers.

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