CarDekho parent Girnar Software posts 32% rise in revenue
Bengaluru: Girnar Software Pvt. Ltd, which owns automobile websites CarDekho, ZigWheels and Gaadi, reported a 32% year-on-year (YoY) rise in its revenue, while losses fell around 5% in the year ended March 2017, the company’s filings with the Registrar of Companies (RoC) show.
Girnar’s total revenue stood at Rs 127.7 crore in FY17, compared with Rs 96.4 crore a year earlier. Losses narrowed to Rs 135.6 crore during the year, from Rs 143.7 crore in FY16.
Most of the company’s revenue comes from advertising on automobile classifieds sites like CarDekho and CarWale. It also has a college discovery and classifieds platform named CollegeDekho, which raised $2 million in a Pre Series A round in April last year.
For FY17, it reported net sales of Rs 113.9 crore, which increased by 38% Y-o-Y from Rs 82.4 crore a year ago. Its expenses increased marginally by 9.5% Y-o-Y to Rs 262.8 crore during FY17.
The company spent the most in employee costs, which stood at Rs 152.2 crore during FY17. Employee costs shot up by 42.3% during FY17.
Girnar Software operates several websites focusing on automobile classifieds. In April, the company received a licence from the Insurance Regulatory and Development Authority (Irda) to launch an insurance product focused on motor insurance. It also provides auto loans through tie-ups with banks, and conducts pre-inspection of used cars put up for sale on its platform.
Girnar Software followed an acquisition-led strategy to grow it business, acquiring three companies in the automobile segment in 2016 alone. In total, it has acquired five companies since its inception in 2007.
Its latest acquisition was in May 2016 when it bought virtual reality start-up Volob Technologies in an all-cash deal. In April, it acquired SaaS start-up Connecto and roadside assistance start-up Help On Wheels Pvt. Ltd in a cash-and-stock deal.
Girnar Software has raised more than $60 million from venture capital firms like Sequoia, CapitalG, HillHouse Capital Group and Tybourne. Its competitors include CarTrade, owned by MXC Solutions India Pvt Ltd, Droom which raised $20 million in July, and other vertical classifieds portal including QuikrCars and Olx. CarTrade had acquired its competitor CarWale in 2015.
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