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CarDekho SEA raises first-ever outside funding, co-founder says he's interested in acquisitions | TechCrunch

Dec 10, 2024 - techcrunch.com
CarDekho SEA, a Singapore-based auto financing platform and the Southeast Asia unit of India’s CarDekho Group, has secured $60 million in equity funding from Navis Capital Partners and Dragon Fund, valuing the company at over $300 million. This marks its first round of external funding, following a previous $40 million investment from its parent company. The funds will support the company's expansion into Southeast Asia, particularly in the used car and bike financing sectors in Indonesia and the Philippines. CarDekho SEA is considering acquiring a used car financing platform or insurance brokerage in these regions to bolster its presence. Founded in 2020, the company already operates in Indonesia, the Philippines, and other Southeast Asian markets, with plans for further expansion by 2026.

CarDekho SEA differentiates itself as a comprehensive aggregator for auto financing services, leveraging technology-driven loan procedures and an asset-light marketplace approach. The company has experienced significant growth, with over 200,000 disbursements and more than $1 billion in loans disbursed, representing a 50x increase in gross merchandise value over the past three years. It partners with over 50 financiers and 20,000 dealers and retail agents, primarily serving small-scale used car dealers. The platform aggregates demand from these dealers, connecting them to a wide network of financiers and offering access to financial products previously inaccessible to them. CarDekho SEA generates over $50 million in annual revenue through per-loan commissions.

Key takeaways:

  • CarDekho SEA, a Singapore-based auto financing service platform, raised $60 million in equity from Navis Capital Partners and Dragon Fund, valuing the company at over $300 million.
  • The company plans to use the funding to expand its presence in Southeast Asia, particularly in Indonesia and the Philippines, by potentially acquiring used car financing platforms or insurance brokerage platforms.
  • CarDekho SEA acts as a comprehensive aggregator for auto financing services, leveraging technology-driven loan procedures and an asset-light marketplace approach to connect small-scale used car dealers with financiers.
  • Since its launch, CarDekho SEA has experienced significant growth, disbursing over $1 billion in loans and establishing partnerships with over 50 financiers and 20,000 dealers and retail agents.
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