Online classifieds startup focusing on the used car segment, CarDekho has managed to close a part of its funding effort that has been on-going for several months. According to an exclusive report on Entrackr, as part of a larger fund-raising round of $150 to $170 million, a tranche of $75 million has been raised.
The investors form a mixture of existing as well as new investors. The report also states that the delay was caused due to a disagreement over the company’s valuation. That issue has since been resolved.
The existing investors in CarDekco include Ratan Tata, Times Internet, HDFC Bank, Hillhouse Capital, Tybourne Capital, and Dentsu Inc. All of them are said to have invested a portion of this $75 million. However, details of the individual amounts and the names of the new investors have not been shared yet. There is also no clarity on who would be involved in completing the investment of the remaining $100 million within this round of funding for CarDekho.
If it succeeds and goes through with that, there would be $175 million in terms of risk capital raised by the company. This would be besides the funds raised in the earlier years of $15 million once and $50 million prior to that.
Though the other startup Cars 24 is more in the news these days thanks to their high-decibel television commercials particularly during the live telecast of sports events. But they have different models of business though within the same segment. While Cars 24 is into buying and selling used cars, CarDekho is limited to offering an online platform for classifieds meant for both the individual sellers and lead generation for the OEMs dealers for new cars,
CarTrade, is probably the real rival and that has already raised funding. Sequoia Capital has recently been a major investor in a $50 million round in Cars 24.