CarDekho Group, a prominent player in the autotech and financial solutions sector, is poised for further expansion in the Middle East after its successful entry into the UAE earlier this year. CFO Neelesh Talathi shared insights on the company’s future at the Startup Mahakumbh event in New Delhi, hinting at exciting developments on the horizon for the region.
Expanding Horizons in the Middle East
Talathi expressed optimism about the company’s strategic growth in the Middle East, emphasizing that their technology solutions resonate well within this market. This expansion not only opens up a larger total addressable market but also promises improved profit margins for CarDekho.
- Recent Acquisitions: The company has actively acquired six firms in the past two years and is currently negotiating with two additional companies, showcasing its commitment to growth through strategic partnerships.
Impressive Financial Growth
In its latest regulatory filings, CarDekho reported a remarkable 54% increase in net revenue, soaring from Rs 1,347 crore in FY23 to Rs 2,074 crore in FY24. Looking ahead, Talathi anticipates a similar growth trajectory for FY25, followed by a projected growth rate of 35-40% in FY26, mainly due to a higher base effect.
- Loss Reduction: The company’s losses notably decreased from Rs 562 crore to Rs 340 crore in FY24, reflecting its strong operational strategies.
Business Diversification and Future Outlook
Talathi mentioned that CarDekho’s classified business segment is set to enhance profitability, while other business ventures will accelerate revenue growth. The company also operates InsuranceDekho and the lending platform Rupyy, diversifying its service offerings.
- Workforce Expansion: Despite integrating AI across its operations, CarDekho plans to grow its workforce, which currently stands at 6,000 employees.
“All of our businesses are in a growth phase,” Talathi stated, showcasing the company’s robust strategic direction.
Anticipated Market Recovery and IPO Plans
CarDekho is optimistic about a rebound in car sales in India, expecting recovery by the second quarter of FY26. Additionally, the company is preparing for an IPO, although specific timelines have not been disclosed yet.
“We are diligently working towards that,” Talathi confirmed, hinting at exciting opportunities for investors and stakeholders alike.
As CarDekho continues to navigate the dynamic landscape of the autotech industry, its strategic expansion and innovative solutions position it well for future success, making it a company to watch in the coming years.
