Used car retailer CarDekho has raised $250 million as a part of its Series E round. With this financing round, the startup is valued at $1.2 billion. With this the CarDekho Unicorn Club has entered. The company described the round as a pre-IPO with a mix of equity ($200 million) and debt ($50 million) financing, a web portal reported.
CarDekho’s financing round was led by LeapFrog Investments. Existing investors Sequoia Capital India and Sunley House have also participated in the round including Mirae Asset, Canyon Partners, Franklin Templeton, Harbor Spring Capital. With this, CarDekho has become the third startup to achieve unicorn status in the used car retailing space.
CarDekho has also become the 33rd startup to achieve unicorn status in 2021. Regarding the new investment, the company said it will use the fresh funds to expand its used cars and financial services business. The company also plans to expand its catalog to over 10,000 cars in the near future, according to the company.
According to the report, CarDekho has closed many of its stores across the country- Gaadi by CarDekho in the last few months. Because it’s a step toward buying a car after a home inspection, the company believes it’s a more efficient business model for them.