SEBI has approved the initial public offerings (IPOs) of coworking space provider Smartworks and logistics business Ecom Express. According to the information on SEBI’s website, the regulator made the remark against Ecom Express on November 29.
A prior, on November 28, Smartworks received the observation. The public offering is approved by SEBI when an observation is issued. In August, Ecom Express submitted its draft red herring prospectus (DRHP) for an initial public offering (IPO) for INR 2,600 Cr. This includes an offer for sale (OFS) for INR 1,315.5 Cr and a new issue of equity shares up to INR 1,284.5 Cr. In the same month, Smartworks submitted its draft IPO documents. The company’s initial public offering (IPO) will include an offer for sale (OFS) of up to 67.49 lakh equity shares and a new issue of equity shares valued at INR 550 Cr. Before submitting its Red Herring Prospectus (RHP), the coworking company also intends to raise INR 110 Cr through a pre-IPO placement.
Operations and Financial Dynamics of Both the Firms
The late TA Krishnan, Manju Dhawan, K Satyanarayana, and Sanjeev Saxena founded Ecom Express in 2012 as a pure-play provider of B2C ecommerce logistics solutions. It makes money by providing services to consumers in the Indian e-commerce sector, which includes D2C, vertical, horizontal, and fast commerce platforms. In the fiscal year 2023–2024 (FY24), the company reported a net loss of INR 255.8 Cr on operational sales of INR 2,609 Cr. Conversely, Smartworks, a shared workspace service that provides businesses with customised coworking solutions, was established in 2016 by Neetish Sarda and Harsh Binani.
With more than 40 locations in 14 cities, including Bengaluru, Kolkata, Delhi NCR, and Mumbai, it boasts more than 8 million square feet of office space. It says it serves over 600 businesses, such as Moglix, DHL, Starbucks Coffee, and Honeywell. It faces competition from companies like IndiQube, WeWork India, and Awfis. According to its DRHP, Smartworks’ operating revenue increased to INR 1,039.4 Cr in FY24, while its net loss decreased to INR 49.8 Cr.
IPOs are Becoming More Common Among Startups
With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.
This remarkable expansion coincides with a slowdown in the global IPO markets, which has seen a 16% drop in capital raised and a 12% drop in listings. India has distinguished itself on the international scene with its distinct blend of economic stability, a flourishing digital economy, and a developing private equity (PE) and venture capital (VC) ecosystem.
It is not a secret that cryptocurrencies have become an integral part of our financial lives. Despite the seemingly complicated structure, the process of crypto trading is quite logical and can be simplified if you follow the sequence of several steps. This article explores the course of action new investors should undertake if they want to know how to buy crypto.
What is Cryptocurrency?
Before you start gathering information about how to buy crypto, it is fundamental to understand the basic notions. Cryptocurrency is a virtual asset that utilises blockchain technology for security and transaction transparency. Almost everyone has heard of the first and most popular digital currency—Bitcoin, which was introduced fifteen years ago. Other notable coins include Ethereum (ETH), Litecoin (LTC), and Ripple (XRP).
Cryptocurrency is used for multiple purposes:
Investments (short-term and long-term) and fund sustaining;
Payment for services and goods;
Conducting money transfers without the involvement of the banking system.
Before you start your trading journey, you have to set your financial goals and what you are going to use your assets for.
Where to Buy Crypto?
The choice of the platform is the key element to success. There are two main options:
Cryptocurrency exchange platforms: Official cryptocurrency exchange services like Binance, Kraken, and Coinbase supply a variety of popular digital currencies and altcoins available for trading. Commissions differ among platforms, so it is vital to get acquainted with the list of applicable fees beforehand. Exchange platforms accept different payment types and deliver secure transactions, as each user has undergone the verification process.
P2P platforms: Peer-to-peer trading platforms are similar to marketplace apps, where the deal is executed between two people, without the involvement of the bank or other financial entity. Similar to centralized exchanges, P2P platforms accept versatile payment methods and the prices for some assets might be quite profitable as they are set by the sellers. However, when choosing this method of how to buy crypto, one must be aware of scammers, as transactions are mostly trust-based.
Be aware that to ensure maximum security the majority of platforms are implementing the KYC (Know Your Customer) process of identity verification. To create a trading account, you will be required to input contact details and provide a valid form of identification.
How Do You Choose Cryptocurrency and What are the Payment Methods?
There are hundreds of coin types on the market, and if you are a newbie and are still learning how to buy crypto then this diversity can become overwhelming and confusing. Newcomers can start investing small sums into popular currencies like Ether or Bitcoin to get acquainted with the market and price fluctuations. Popular currencies are more stable and possess high liquidity. And after the initial investment has been made, it is possible to start thinking about diversification. Study information about each currency you are interested in, compare the price graphs, and analyse the prognosis.
Key factors to consider:
Total market value
Current price and dynamics
Practical use and expansion opportunities
There are several payment options for cryptocurrency: using a credit/debit card, via bank transfer, using payment systems like PayPal or Skrill, or even using cash (on P2P platforms). Remember that each method has commissions and you should check its amount on the platform.
How to buy crypto becomes a simple process if you follow these easy steps and spend time educating yourself about the basics of the market. Start by choosing a reliable platform, purchasing your first asset, and securing your funds. For more information, platform reviews, and cryptocurrency trading tips, make sure to visit your reliable partner. You will find everything you need for a successful start in the world of digital assets!
The Foodie Bay Employees ESOP Trust, an employee welfare trust established by the foodtech company, has received 47.75 Cr equity shares from Zomato under various employee stock option programmes (ESOPs). The Deepinder Goyal-led firm announced in an exchange statement on December 2, that its board had authorised the issuance and distribution of 47.75 Cr equity shares under the Zomato ESOP 2018, ESOP 2021, ESOP 2022, and ESOP 2024 schemes, each with a face value of INR 1.
The newly allocated shares are valued at INR 13,489.3 Cr (about $1.60 Bn) based on the stock’s most recent close. According to the filing, the company’s issued, subscribed, and paid-up equity share capital grew from INR 917.28 Cr to INR 965.03 Cr with the allocation of new equity shares to Foodie Bay Employees ESOP Trust.
Strengthening the Cash Balance to Remain Ahead in the Race
CEO Deepinder Goyal stated that Zomato needed to improve its cash balance because of the current competitive environment and the company’s much larger scale. It is anticipated that Zomato’s financial stability may suffer in the near future as a result of the growth of Blinkit, its rapid commerce division. This was made clear by Zomato’s Q2 FY25 results, which showed a 30% sequential drop in net profit to INR 176 Cr for the foodtech company. This was mostly caused by higher costs associated with Blinkit’s expansion drive. Strong performance across its meal delivery and quick commerce sectors drove a 14% quarter-over-quarter increase in operating revenue to INR 4,799 Cr in Q2 FY24.
ESOP Getting More Popular Among Startups
As part of their initiatives to reward staff, several modern internet businesses have issued ESOPs this year, including Delhivery, Nykaa, ixigo, and ideaForge, among others. The travel tech business ixigo gave 17.57 lakh stock options last month, while logistics giant Delhivery increased its ESOP pool by allocating 73K stock options. Only a few days after raising INR 8,500 Cr through the placement of eligible institutions—its first significant fundraising effort since its 2021 IPO—Zomato announced its ESOP.
Furthermore, the median ESOP pool size grew from 9% in 2021 to 12.6% in 2024, and 90% of founders now talk about ESOPs with candidates during interviews or job offers, up from 75% in 2021. Additionally, the reasons for providing ESOPs have changed; in 2024, 40% of founders cited cost reductions, up from 28% in 2021. The founders cited the necessity to retain people as the second most important reason for putting these plans into action, behind creating a sense of ownership and company culture.
Even with this increase, fewer than 30% of founders still fully understand the complexity of ESOPs, a percentage that hasn’t changed since 2021. Just 14% of founders felt educated about the tax consequences of ESOPs, which is a fairly low level of understanding.
Listed gaming giant Nazara Technologies has announced plans to continue its acquisition binge by investing in kids’ play centre company Funky Monkeys and edtech Learntube.ai, as well as acquiring a larger stake in three of its subsidiaries: Nodwin, Sportskeeda’s parent company Absolute Sport, and adtech Datawrkz. The investment will strengthen “its position in the gaming and entertainment ecosystems,” according to a statement from Nazara.
Nazara will subscribe for optionally convertible preference shares in order to invest INR 64 Cr in its esports subsidiary Nodwin. This is intended to help the gaming subsidiary grow and improve its intellectual property. It is important to remember that Nodwin is one of Nazara’s main sources of income.
Details of Further Investments
Nazara announced that it would spend INR 69 Cr to buy shares that resulted from Sportskeeda employees exercising their ESOPs. This will make it a completely owned subsidiary and raise its ownership position in Absolute to 100%. By subscribing to its mandatory convertible cumulative preference shares (CCPS), the business would spend INR 15 Cr in its adtech subsidiary. In 2022, it purchased a 33% share in Datawrkz. For INR 43.7 Cr, Nazara is purchasing a 60% share in the chain of indoor play centres. Funky Monkeys Play Centres, which was founded in 2012 by Binita Putcha and Sanjay Ghadiali, operates 11 locations around India and bills itself as the industry leader in indoor play centres for children.
According to its founders, the acquisition will enable synergies with Nazara’s digital intellectual property, namely Kiddopia. For a 4.7% share in the AI-powered edtech platform, Nazara will invest INR 4.2 Cr. In October of last year, Learntube, formerly known as CareerNinja, obtained initial commitments from investors such as Blitzscaling Ventures, Goodwater Capital, and Bisk Ventures as part of its larger $2 million seed round. It’s unclear if the Nazara funding is included in the seed funding round as well. Learntube is a platform driven by artificial intelligence that combines gamification and individualised instruction to create an engaging educational experience.
Nazara’s First AI Investment
Nitish Mittersain, the CEO of Nazara, stated in a LinkedIn post that the Learntube investment will be the company’s first AI investment. According to Mittersain, Nazara is dedicated to creating the most diverse gaming and entertainment platform in India, and many of the efforts it unveiled on December 2nd are intended to spur profitable growth in these key areas of the business’ focus. The announcement of the financing follows Nazara’s November 27 private placement transaction, in which it raised INR 855 Cr ($101.3 Mn). The financing included participation from investors such as SBI Mutual Fund, Aamara Capital, and Mithun Sacheti, the founder of Caratlane.
Nazara Expanding its Nexus
The business subsequently stated that it intended to use the funds to finance corporate expansion, make strategic acquisitions, and improve the company’s capacity to grasp fresh growth prospects. Nazara said on November 29 that it has acquired Trinity Gaming, a gaming agency and platform, for INR 24 Cr ($2.8 Mn), shortly after obtaining the new funding. Notably, during its 2024 acquisition binge, the corporation acquired shares in Pokerbaazi, Paperboat, STAN, Fusebox, Ninja Global FZCO, Freaks 4U, and Circle of Games. Nazara’s consolidated net profit for the September quarter of the current fiscal year (Q2 FY25) was INR 16.24 Cr, which is 33% less than the INR 24.18 Cr it made in the same period last fiscal year.
Google CEO Sundar Pichai was served with a contempt notice by a Mumbai court on 2 December. The said notice has been served regarding YouTube’s noncompliance with a court order mandating the removal of a defamatory video called “Pakhandi Baba ki Kartut.” Yogi Ashwini, the founder of the animal charity NGO Dhyan Foundation, is purportedly the target of the posted video.
The notification was sent on November 21, 2024, by the Additional Chief Judicial Magistrate’s Court in Ballard Pier. The controversy started when the Bombay High Court ordered YouTube to remove the controversial video on March 31, 2024.
How it all Started?
According to the Dhyan Foundation, the video includes offensive and defamatory content that has damaged Yogi Ashwini’s and the organisation’s reputations. The video is apparently still available outside India in spite of the court’s order. In October 2023, the Dhyan Foundation accused Google of wilfully disobeying the court order in a contempt plea. Raju Gupta, the NGO’s attorney, claims that Google has used delay tactics by requesting adjournments without good cause while reputational damage persists.
Response from YouTube
YouTube has responded by claiming that defamation is not a type of content that can be restricted under Section 69-A of the Information Technology (IT) Act, therefore invoking its immunity under the Act. Additionally, the platform said that civil courts, not criminal ones, are more appropriate for handling defamation cases.
Because the IT Act does not specifically prohibit criminal courts from hearing such cases, the judge rejected YouTube‘s concerns. According to the court’s order, the respondent’s filed authority is currently beneficial to the court. The process is mentioned in the aforementioned authority. Nevertheless, it is never stated that the criminal court lacks the authority to consider such an application. Thus, in the humble view of the court, the current application’s maintainability will not be hindered by the ratio of the aforementioned authorities.
Google in Slew of Legal Obligations in India
Interestingly, this is not the first time Google has been involved in a dispute in the nation. Earlier this year, some Indian businesses claimed that Google was charging them a large 11-26% fee on payments made through alternative billing systems, prompting the antitrust authority to initiate a probe into the company’s contentious user choice pricing system. Google was previously fined more than INR 2,200 Cr by the antitrust commission in 2022 for two different cases concerning abuse of power in the market for Android devices and its Play Store regulations.
In a different matter, the Competition Commission of India (CCI) is looking into Google after receiving a complaint from the gaming platform WinZO. The tech giant has been charged with giving Rummy and daily fantasy sports (DFS) apps a substantial competitive advantage at the expense of other real-money gambling (RMG) apps.
Authorities investigating the goods and services tax (GST) have so far charged 17 cryptocurrency exchanges with dodging the tax to the tune of INR 824.14 Cr. Pankaj Chaudhary, the minister of state (MoS) for finance, stated in a written response to the Lok Sabha that INR 122.29 Cr in GST dues, including interest and penalties, had been recovered from the cryptocurrency platforms.
WazirX parent company Zanmai Labs owes the government INR 40.51 Cr, while cryptocurrency giant Binance’s subsidiary Nest Services alone is responsible for 87% of the INR 824 Cr tax evasion, or INR 722.43 Cr. CoinDCX and Neblio Technologies, their FIU-registered Indian company, have been charged with tax evasion of INR 26.63 Cr. Likewise, CoinSwitch Kuber is being investigated for INR 14.13 Cr in GST evasion, while ZebPay is being investigated for INR 7 Cr in GST avoidance. Authorities have also booked other cryptocurrency exchanges, such as Flipvolt Technologies, UnoCoin, and BuyUcoin.
Virtual Digital Assets
The majority of cryptocurrency assets, with the exception of gift cards and vouchers, are categorised as “Virtual Digital Assets” (VDAs) under Section 2(47A) of the Income Tax Act. According to the Finance Ministry, 47 Virtual Digital Asset Service Providers (VDA SPs) have registered with the Financial Intelligence Unit-India as reporting companies in accordance with the Prevention of Money Laundering Act of 2002. Cryptocurrency transaction income is subject to a flat 30% tax rate and 1% tax deducted at source (TDS) on transactions over INR 50,000 per year.
Bringing Crypto Under the Roof of PMLA
The Prevention of Money Laundering Act (PMLA) has applied to cryptocurrency assets since March 2023, forcing exchanges and crypto service providers to adhere to anti-money laundering regulations, such as know your customer (KYC) requirements. The Financial Intelligence Unit-India is in charge of enforcement. Digital assets do not currently have a defined Harmonized System of Nomenclature (HSN) code or pricing. Rather, the GST rate of 18%, the highest in this category, is applied to the HSN code 960899, which covers “other miscellaneous articles.” Only those who voluntarily register for GST or whose sales or turnover during the fiscal year surpass the INR 40 lakh level are subject to GST obligation.
Although “crypto” and “digital assets” are not defined in the current GST Act, the word “virtual digital assets” was added in the financial budget. Any type of code or information that represents value and can be traded and utilised in financial transactions is referred to as a virtual digital asset. Non-fungible tokens (NFTs) and other digital assets designated by the central government, excluding Indian or foreign currencies, are among the assets that can be electronically stored or transferred.
Sugar Cosmetics has quickly risen to become one of the most beloved cosmetics brands in India. Recognizing a need for high-quality, affordable makeup designed specifically for Indian women, the duo launched the brand with a mission to promote inclusivity and empower individuals with diverse skin tones and types. Despite encountering obstacles such as limited capital and supply chain challenges, their determination and enthusiasm transformed this bootstrapped venture into a remarkable success. Today, Sugar Cosmetics is renowned for its vegan and cruelty-free products that appeal to a younger audience. Vineeta, a graduate of IIT Madras and IIM Ahmedabad, along with Kaushik, an alumnus of IIM Ahmedabad, have demonstrated their dedication to reshaping beauty standards in India.
Sugar Cosmetics Founders (Vineeta Singh and Kaushik Mukherjee)
Sugar Cosmetics, co-founded in 2012 by Vineeta Singh and Kaushik Mukherjee, is now a leading Indian cosmetics brand. After encountering challenges in two prior ventures, the duo identified a gap in the market for high-quality, affordable cosmetics catering to Indian women. With Singh’s background from IIT Madras and IIM Ahmedabad and Mukherjee’s IIM Ahmedabad credentials, they launched the brand, emphasizing inclusivity and empowerment for women of all skin tones. Overcoming struggles with funding, suppliers, and team building, Sugar Cosmetics achieved profitability by 2014. Their crayon lipsticks gained popularity, supported by social media and influencer marketing. With angel funding in 2015, e-commerce expansion in 2016, and offline stores by 2018, the brand now operates across 10,000+ retail locations.
Concerning the Indian market, Sugar Cosmetics noticed the gap for good-quality affordable makeup that was also not cruelty tested and specifically targeted urban girls in the country. Its focus on such a demographic placed the brand ahead as one thinking progressively but also ethically for people’s values.
To cover all channels for easy availability of products, the company took an omnichannel route. Its products are also available online through its own website and e-commerce websites like Amazon, Nykaa, and Myntra. Offline, the brand associates with retailers like Lifestyle, Shoppers Stop, and Health & Glow, besides running exclusive kiosks in malls. Social media sites, likeInstagram, Facebook, and YouTube, engage customers through tutorials, beauty tips, and product updates, and loyalty programs, like the “Sugar Circle,” strengthen customer relationships.
The brand’s success relies on key resources, including innovative product development, efficient supply chain management, and impactful marketing strategies. Its team designs cruelty-free and vegan products that meet customer needs while ensuring ethical manufacturing practices.
Sugar Cosmetics operates on a multiple revenue model that is centered on the selling of cosmetic products. The online as well as offline platforms will help in reaching out to the customer. Most of its revenue comes from e-commerce websites such as its website and Amazon and Nykaa. Besides, with more than 40,000 retail outlets in India, the brand has further accessibility. The brand is using limited-edition collections and exclusive product launches to create buzz and achieve periodic sales peaks. It uses loyalty programs, seasonal discounts, and influencer marketing to increase customer retention and acquisition. Though the focus remains on the Indian market, the company has been increasing its international presence, which has helped in incremental growth in revenue. With a diverse product portfolio that includes makeup for lips, eyes, and face, as well as skincare items, Sugar Cosmetics caters to a wide consumer base.
Operating revenue for FY2024 for Sugar Cosmetics was INR 505 crore, up 20.2% from INR 420 crore in FY2023. The company’s total expenses, grew by 15.6% to INR 584 crore from INR 505 crore in the previous fiscal year. This significant growth is reflective of the brand’s successful expansion strategies and increasing market penetration. Alongside Sugar’s revenue having grown significantly, Sugar Cosmetics has incurred a net loss of INR 67.5 crore in FY2024, a reduction from INR 76.2 crore in FY2023. This suggests that investment in scaling operations and growing market presence continues.
SugarCosmetics is one of those companies that makes high-quality products affordable and cruelty-free and specifically designed for Indian skin tones was Sugar Cosmetics. There is an immense gap in the market that diverse shades and formulations make the brand a voice and advocate for inclusivity in telling the story of millennials to Gen Z‘s desire for representation. Situated between the drugstore and luxury cosmetics, Sugar Cosmetics offers premium quality at very accessible prices. All products are vegan and cruelty-free, responding to the high demand for ethical and sustainable beauty solutions. Vibrant, trend-oriented packaging appeals to young consumers and increases social media recognition and sharing.
Offers high-quality, affordable cosmetics tailored for Indian skin tones, fostering inclusivity and brand loyalty.
Engages millennials and Gen Z through digital marketing and social media, building a vibrant consumer community.
Positions products as affordable luxury, appealing to budget-conscious buyers seeking premium quality.
Emphasizes cruelty-free, vegan practices, attracting environmentally conscious and sustainability-focused consumers.
Weakness
Heavy reliance on physical retail outlets makes the brand vulnerable to disruptions like pandemic-induced lockdowns.
International expansion is in the early stages, restricting market potential compared to established global players.
Operates in a crowded beauty market, requiring constant innovation to stand out and retain customers.
Opportunities
Expanding into international markets with localized strategies can help Sugar Cosmetics reach new audiences.
Introducing skincare or haircare products could attract diverse consumers and strengthen customer loyalty.
Partnering with influencers or brands can boost visibility and drive sales through targeted co-marketing efforts.
Threats
Competes with prominent brands like Nykaa, MAC, and L’Oréal, requiring ongoing innovation to maintain a competitive edge.
Being able to quickly adapt to changing beauty preferences is essential for staying relevant and meeting consumer expectations.
Variations in consumer spending during economic downturns can impact the sales of non-essential beauty products.
Conclusion
SUGAR Cosmetics has been excellent in innovating, executing customer-centric strategies, and achieving fantastic partnerships that build great potential for future scale. When the brand expands this line of products and intensifies its market footprint, watch the changing consumer behaviors to pick on trends. Excellent is how digital strategies in its omnichannel powerhouse mix up with physical store footprints. This commitment towards quality, inclusivity, and customer nurturing has transformed SUGAR Cosmetics into a robust community of beauty enthusiasts loyal to the brand. A holistic approach toward innovation and customer engagement makes SUGAR Cosmetics a brand apart and one of the successful examples of sustainable growth in the beauty industry.
FAQ
Why are Sugar Cosmetics successful?
Sugar Cosmetics succeeds due to its trendy, affordable products, effective digital marketing, influencer collaborations, and strong e-commerce presence.
Is Sugar Cosmetics in profit or loss?
Sugar Cosmetics has incurred a net loss of INR 67.5 crore in FY2024, a reduction from INR 76.2 crore in FY2023. Despite strong revenue growth, higher operational and employee costs have impacted its profitability
What is the unique selling point of SUGAR Cosmetics?
SUGAR Cosmetics’ unique selling point is its focus on bold, high-quality products tailored to Indian skin tones, combined with strong digital marketing and affordability.
In an unpredictable world where fraud is a constant, insurance offers a consoling barrier against life’s transience, safeguarding our vehicles and personal safety. However, not all insurance providers embrace the notion of zero commissions and an exclusively online business model. A notable exception to this norm is Acko, which is rapidly gaining favor for its innovative approach and customer-centric practices.
Acko is committed to offering Indians high-quality insurance options. The company’s extraordinary growth and influence on the insurance industry have earned it unicorn status.
In this article, we will delve into the successful journey of Acko, its founder, business model, funding, competitors, and more.
Acko General Insurance is a private general insurance company operating in India. The company has received its license from the Insurance Regulatory and Development Authority of India (IRDA) in September 2017. Acko boasts of an online model of insurance, with the help of which it offers its customers premium insurance facilities and bite-sized insurance products with zero commissions. All the operations of the company take place through its digital platform, thereby removing the need for any paperwork.
Acko – Industry
The International Trade Administration’s estimate indicates that India’s insurance market is expected to grow at a quick pace and reach a valuation of $280 billionby 2025. This significant increase is propelled by an impressive compound annual growth rate (CAGR) ranging from 12% to 15%.
The population’s increased knowledge of the importance of insurance and the concurrent rise in disposable incomes are the main causes of this amazing expansion. The aforementioned characteristics indicate a growing market trend in the insurance industry that is consistent with the changing economic conditions.
Acko – Founders and Team
Varun Dua, Founder and CEO, and Ruchi Deepak, Founder and Board Member founded Acko in 2016.
Varun Dua
Varun Dua, Founder and CEO of Acko
Varun Dua is the CEO and the founder of the company, Acko. He completed his education at MICA, Ahmedabad, and the University of Mumbai. After finishing his graduation, Varun served as a trainee at Leo Burnett Advertising for less than a year. He then started his career as a marketing manager at Tata AIG Life Insurance and Franklin Templeton Investments. Varun then founded Coverfox Insurance Broking Pvt. Ltd. Before he founded Coverfox in 2013, Varun founded Glitterbug Technologies. Varun Dua holds a prominent role as one of the Sharks on Season 3 of Shark Tank, adding his expertise and insights to the entrepreneurial landscape.
Ruchi Deepak
Ruchi Deepak, a distinguished entrepreneur, serves as both the founder and Board Member of Acko, a pioneering platform in the insurance industry. After completing her studies at Lady Shri Ram College for Women, she set off on a voyage that went beyond the classroom. Her subsequent appointment as a board member at Pitstop further demonstrated her wide range of experience and allowed her to share her perspectives on convenience and car maintenance. She also founded Airloom where she is serving as the founder and CEO, this demonstrates her dedication to leadership and innovation.
Acko – Startup Story
Acko was founded by Varun Dua and Ruchi Deepak in 2016 as the first digital insurance service provider in India. Varun and Ruchi identified two major problems in the insurance industry before starting Acko. They saw how difficult and opaque the procedures were, especially when it came to simple things like auto insurance. They also understood the complexities involved in determining insurance premiums and sought to develop a pricing strategy that would be more accommodating to customers.
“We saw a huge opportunity that a digitally empowered insurance company could unlock both in terms of customer experience and enterprise value. My co-founder Varun Dua and I decided to pursue it,” added Ruchi.
The Indian insurtech market, which was formerly dominated by multi-insurance companies, underwent a change in 2018 as general insurance received more money and attention. Seizing this opportunity, Varun and Ruchi established Acko and positioned it as a force for disruption. Acko joined the market with the goal of revolutionizing the insurance sector and providing a more open and approachable insurance experience by streamlining insurance procedures and pricing.
Acko – Mission and Vision
The mission on the company’s website states, “To always prioritise you in everything we do.”
The vision of the company is to deliver outstanding value to its customers.
Acko – Name and Logo
Acko Logo
Acko General Insurance is under the umbrella of its parent organization, Acko Technology & Services Private Limited.
Acko General Insurance provides exclusive Acko mobile insurance, Acko car insurance, Acko bike insurance, Acko Group Health insurance, and more. Let’s check out some of these insurances and how they work:
Acko Car Insurance – Acko car insurance policy offers coverage for numerous care-related risks. Opting for car insurance from Acko helps the users get financial assistance in case their own car faces damage.
Acko Bike Insurance – The Acko Bike Insurance plan offers extensive coverage for two-wheelers, protecting against damages, total loss, and theft. With Acko Bike Insurance, one can get a comprehensive policy that ensures financial security in various scenarios, providing peace of mind and a secure riding experience.
Acko Health Insurance – Acko Health Insurance offers comprehensive coverage for medical expenses, ensuring financial protection and access to quality healthcare. Tailored for individual well-being, Acko’s plans provide a reliable safety net for unexpected health challenges.
Acko Life Insurance: When it comes to life insurance, Acko offers a convenient online option that allows you to purchase coverage directly from your mobile phone. This eliminates the need for physical meetings and offers various plan options, including Term Life Insurance, Whole Life Insurance, and Endowment Plans. Acko’s online approach ensures a hassle-free experience, providing flexibility and ease in choosing the right coverage for your needs.
Acko Travel Insurance: Acko Travel Insurance offers comprehensive coverage for risks and financial losses during your travels. Acko’s travel insurance offers a safety net in case of flight delays, cancellations, misplaced bags, or medical crises. With the policy’s flexibility to accommodate both single and numerous journeys, customers can explore the world with confidence, knowing that unforeseen expenses will be taken care of. With Acko’s dependable and adaptable travel insurance options, customers can travel with confidence.
Acko – Business Model
Acko adopts a direct-to-consumer business model, leveraging its online platform to efficiently distribute traditional insurance products, thereby enabling advantageous risk selection and underwriting. Acko distinguishes itself by providing unique and user-friendly insurance options, such as rider insurance, mobile and appliance protection, ticket cancellation, and more, in addition to extensive coverage for cars and health.
This varied portfolio not only satisfies changing client demands but also showcases the company’s dedication to offering innovative and customized insurance products via an efficient digital platform.
Acko strategically uses multi-faceted methods to diversify its sources of income:
Premiums: Acko’s primary source of income is the gathering of premiums from a wide range of clients, including both private and business customers. Selling complete insurance coverage is the cornerstone of this strong financial base.
Commissions: Acko increases its revenue by receiving commissions from affiliated businesses, making use of joint ventures to offer insurance products to their clients or staff members as value-added services. The company’s financial resiliency is enhanced by this win-win strategy.
Data Monetization: By gathering useful consumer data, Acko’s data-driven approach not only makes it easier to identify risks effectively but also opens up new revenue streams. This data is used for analytics, advertising, and targeted marketing, demonstrating Acko’s skill in extracting value from its information repository and enhancing its entire business plan.
Acko Life Flexi Term Plan: Acko has introduced its first Life Insurance product, the Acko Life Flexi Term Plan. This digital-first policy offers flexible coverage and simplifies long-term financial protection.
With the $2 million Employee Stock Ownership Plan (ESOP) liquidity program, which benefited about 40 long-term team members, Acko reached a significant milestone in 2021. The initiative acknowledged the commitment and hard work of eligible employees by allowing them to liquidate 40%–100% of their vested ESOP after working for Acko for three years.
This calculated action demonstrates Acko’s dedication to creating a work environment where team members are valued and appreciated for their crucial contribution to the expansion and success of the business.
Acko – Shareholders
Acko Shareholding as of December 2023 (source: Tracxn):
Acko Shareholders
Percentage
Varun Dua
3.9%
General Atlantic
20.6%
Elevation Capital
6.3%
Accel
8.9%
Lightspeed Venture Partners
5.2%
FPGA Family Foundation
5.1%
Multiples Alternate Asset Management
4.9%
CPP Investments
4.8%
Intact Ventures
4.5%
Munich Re Ventures
3.9%
Amazon
3.7%
Angel
5.4%
ESOP Pool
8.6%
Others
14.2%
Acko Shareholders
Acko – Funding And Investors
Acko has raised a total of $458 million in funding over the 9 funding rounds.
Here are the funding details:
Date
Transaction Name
Money Raised
Lead Investors
June 7, 2023
Private equity Round
–
General Atlantic
May 25, 2023
Series E
–
–
October 27, 2021
Series D
$255 million
General Atlantic, Multiples Alternate Asset Management Private Limited
September 15, 2020
Series D
$60 million
Munich Re Ventures
November 28, 2019
Venture Round
$36 million
Ascent Capital, Binny Bansal
March 13, 2019
Series C
$65 million
Amazon
May 27, 2018
Series B
$12 million
Amazon
May 23, 2017
Seed Round
$30 million
Kris Gopalakrishnan and N.R.Narayana Murthy
Acko – Investments
Acko made a INR 50 crore investment in MyGate on November 23, 2022, as part of their fundraising round.
Acko – Acquistions
Acko expanded its portfolio on March 15, 2023, with the acquisition of Parentlane. This follows its earlier acquisition of vLer on June 3, 2019, highlighting Acko’s strategic growth approach and commitment to enhancing its market position.
In July 24, 2024, Acko acquired the digital chronic care platform OneCare to enhance its healthcare offerings. OneCare’s co-founders will join Acko’s leadership team.
Acko – Growth
The digital insurance firm Acko is still growing at a very impressive rate as of January 2024, and some significant growth highlights its standing in the market:
Over 2.8 crore customers are served by Acko’s insurance services, demonstrating the company’s broad client base’s trust.
Acko’s ability to provide a wide range of insurance solutions to its clientele is demonstrated by the issuance of over 8 crore policies.
Acko consistently maintains an exceptional 94.54% claim settlement ratio, demonstrating its dedication to prompt and equitable resolutions and fostering trust among policyholders.
Acko is known for its efficiency and sets industry standards. As of January 2024, they settled claims in just 12 minutes, which is evidence of their responsive and efficient processes.
Financials
Acko Financials
FY22
FY23
FY24
Operating Revenue
INR 1,334 crore
INR 1,758 crore
INR 2,106 crore
Total Expenses
INR 1,835
INR 2,535 crore
INR 2,830 crore
Profit/Loss
Loss of INR 482 crore
Loss of INR 738.5 crore
Loss of INR 670 crore
Acko Financials
Expenses Breakdown
Acko total expenses have increased from INR 2,535 crore in FY23 to INR 2,830 crore in FY24.
Acko has seen some partnerships since it started as a company. To mention, some of the prominent ones are:
CRED
CRED has partnered with ACKO General Insurance to provide motor insurance with dynamic pricing. Members with higher credit scores benefit from reduced premiums.
Mygate
MyGate, in collaboration with Acko General Insurance, has secured an IRDAI aggregator license to offer insurance policies with exclusive pricing and a broader range of products.
Greaves
Greaves’ evfin partners with ACKO to provide tailored financing and affordable insurance options, simplifying access for EV users.
Ola
Acko collaborated with Ola to launch an in-trip insurance program that is running in over 110 cities.
Amazon
The company partnered with Amazon India to bring in mobile insurance plans on the website of the seller.
Amazon Pay
With Amazon Pay, Acko witnessed another partnership, which helped the startup launch an auto insurance policy in July 2020.
HDB Financial Services
Acko also collaborated with HDB Financial Services and offered HDBFS insurance for the customers, which doesn’t have any additional costs with EMI cards.
Ather
In order to provide a special extended battery warranty plan in April 2023, the company has partnered with Ather.
Lohum
In order to recycle and reuse batteries, Lohum, a producer of sustainable energy transition materials, and ACKO have a partnership in May 2023. This will allow EV battery insurance in the nation to include provisions for recycling and reusing the batteries.
Multipl
‘Invest now, Spend later’ platform Multipl has partnered in June 2023 to offer integrated insurance payment solutions to its clients.
Sony LIV
For the third year running, ACKO and Sony LIV team together to reimagine how media partners and businesses work together to achieve goal-driven outcomes in August 2023.
Indian Super League (ISL) side, Chennaiyin FC (CFC)
The Indian General Insurance company, ACKO, and the Indian Super League (ISL) team Chennaiyin FC (CFC) have announced a renewal of their partnership in September 2023. In accordance with the renewal, ACKO has been named the associate sponsor of the football team with headquarters in Chennai for the current ISL 2023–24 season.
The Acko Platinum Health Plan, the offering from Acko Insurance India, was recently introduced along with a six-part film campaign. Renowned Bollywood actors Sanjay Dutt and Arshad Warsi, who played Munna Bhai and Circuit in the Munna Bhai, are back in the campaign.
Through Munna and Circuit, two lovable and well-known characters, the campaign seeks to convey the spirit of the Acko Platinum Health Plan while weaving an original and captivating story for its viewers.
Acko – Awards and Achievements
Being a successful startup that is already a unicorn and is growing each day, Acko has received numerous awards. Some of them are:
Golden Peacock Innovative Product Award 2019: Acknowledged for the development of “Ola Ride Insurance,” a contextual microinsurance product that garnered recognition for its innovation and relevance in the market.
FICCI Insurance Industry Awards 2020: Received the prestigious “Most Innovative Insurer” award in the Non-Life Segment, recognizing Acko’s groundbreaking contributions and inventive approach within the insurance sector.
BW Festival of Fintech 2021: Honored as the “Best Insurtech Company,” solidifying Acko’s position as a leader in leveraging technology and innovation to revolutionize the insurance landscape.
Acko – Competitors
The top competitors of the company are Easypolicy, PolicyBazaar, and Digit.
Easypolicy is the top competitor of Acko. It was founded in 2011 in Noida, Uttar Pradesh. This company competes with Acko in the Health and Life Insurance industry.
PolicyBazaar is one of the top competitors of Acko. It was founded in 2008 in Gurgaon, Haryana, India. This company also operates in the Health and Life Insurance industry.
Digit is also one of Acko’s top competitors. It was founded in 2016 and is headquartered in Bengaluru, Karnataka, India. Digit also works in the Health and Life Insurance sector.
Acko – Future Plans
According to a January 30, 2024, news story, Acko, has set a strategic goal of becoming profitable by the 2026–2027 fiscal year (FY27). The positive earnings from its health and general insurance businesses are expected to propel the company into profitability. Founder and CEO Varun Dua disclosed the company’s lofty goals in an interview with UBS Global.
Varun Dua claims that Acko wants to reach a premium of Rs 2,000 crore by the end of FY24, the fiscal year 2023–2024. Furthermore, the organization expresses confidence in maintaining a strong growth rate of 35% annually, signifying a dedication to ongoing expansion and advancement within the insurance industry.
FAQs
Who are the owner of Acko?
Varun Dua and Ruchi Deepak are the owners of Acko.
What is ACKO?
Acko General Insurance is a private general insurance company in India. It is popularly known as India’s first digital insurance company.
Where is the Acko headquarters?
Acko headquarters are in Bangalore, Karnataka, India.
Does ACKO provide cashless insurance schemes?
Yes, ACKO has cashless schemes for insurance.
Is ACKO General Insurance reliable and trustworthy?
Yes, ACKO General Insurance is quite reliable and trustworthy. It is licensed and certified by the Insurance Regulatory and Development Authority of India (IRDAI).
What is Acko new car insurance?
The Acko car insurance policy also have new car insurance policies that cover the new cars as soon as they are bought from their respective showrooms. Besides, it also has car insurance policies for old cars, which covers for all the damages dealt and received by the insured cars.
What is Acko insurance mobile?
Acko insurance Mobile, or Acko mobile Insurance, is an insurance policy of Acko to cover the damages to mobile devices of its users.
Is Acko Profitable?
In FY24, Acko experienced significant revenue growth, reaching INR 2,106 crore from INR 1,758 crore in FY23. Additionally, the company’s losses had decreased from INR 738.5 crore to INR 670 crore in the same period, Unfortunately, it still meant that Acko was not profitable as of FY24.
What is Acko health insurance?
Acko health insurance is another Acko product that provides insurance coverage essential for people’s healthcare needs. The health insurance of Acko offers financial assistance to the insured patient in case of any unfortunate event, accidents, planned/emergency hospitalisation, and more.
What is meant by Acko group health insurance policy?
Acko brings the all-new Acko group health insurance policy, which helps employees get the financial assistance they deserve in this post-Covid era.
What was essential to push Grofers forward and grow one of the biggest eGrocery players in the Indian market in such a short duration of just 4 years has been the entrepreneurial spirit and the foresight that Albinder Dhindsa carries for the market.
Co-founder Dhindsa kept running the day-to-day activities and strategic moves at the helm of affairs within Grofers. From the initial concept to its inception, raising funds to set up the company – Dhindsa led in strategizing the long-term business model and setting up viable supply chains.
With a visionary like Dhindsa at its helm, Blinkit (previously Grofers) grew more than 4 times in India and recently crossed over 100 crore monthly GMV or Gross Merchandise Value. Presently, even though acquired by Zomato, Blinkit is one of the biggest players in the eGrocery industry, especially in the Next Day Delivery Model.
Albinder hails from Patiala in Punjab. He completed his Bachelor’s program at IIT Delhi and started his career as a transportation analyst at URS Corporation, where he worked for 2 years. Later, he joined Cambridge Systematics as a Senior Associate and worked for more than 3 years.
In 2010, he went to the University of Columbia, United States, to pursue his MBA. Here, Dhindsa joined UBS Investment Bank as an associate and worked for 3 months.
After completing his MBA, he returned to India and knew he wanted to work in the food domain. He entered the Indian workforce as the new Head of International Operations at Zomato. Here he gathered enough knowledge and experience to begin working on his dream project, Grofers.
As Dhindsa worked in the food delivery business, he realised that there were loopholes in the logistics sector. While brainstorming with his partner, Saurabh Kumar, he saw that most of the transactions between the local merchants and consumers were mostly unorganized.
As he met and spoke to more and more local merchants with a good customer base, he realized that they struggled to deliver quality goods in a reliable manner. That was the ‘Eureka!’ moment for Dhindsa as he dreamt of a startup that would help with daily problems. That was when the concept of Grofers was born.
According to Dhindsa, the initial purpose of Grofers was to offer on-demand pick-up and drop service from shops around the same neighborhood. The shops in question were mostly pharmacies, grocery stores, and restaurants. Their ideology was to provide customers with a one-stop solution for local everyday requirements.
After realizing that they needed to confine their business only to pharmacies and groceries (there were enough food delivery apps already in the market). They then rebranded their startup as Grofers – a super-local logistics agency.
Albinder Dhindsa – Major Challenges Faced
Towards the end of 2015, Grofers was running at a loss of INR 225 crores with a revenue of only INR 143 crores. For months, Grofers kept hitting losses, but that changed when they launched a mobile app in 2015. Sadly, the scale-up operation had gone haywire and Grofer’s suffered tremendous losses.
Again, Dhindsa identified the loophole and resolved the issue. The problem lies with a complicated and broken supply chain. To help solve this problem, the Grofers entrepreneur set up their own supply chain.
When working for Zomato, Albinder realized that there was a market gap when it came to connecting local merchants with consumers. The idea to create a one-stop solution for all local needs was born and the hyper-logistics company, Grofers, came into existence. Under his leadership, the company was named one of the top 10 start-ups by YourStory.com and was listed in the top 10 promising Gurgaon-based start-ups by IndianWeb2.com.
Grofers faced multiple issues and at one moment was running at a loss of INR 7 Crore on revenue of INR 5 crore. However, Albinder came up with the idea to have Grofer’s own warehouse and supply chain management. During the initial stage, investors did not want to join a business that did not return any profits. But Dhindsa and his partner were able to convince some investors. They started by setting up over 60,000 sq. ft. storage facilities in Gurgaon, Delhi, and Bangalore. Smaller warehouses of 20,000 sq. ft. were set up in cities like Jaipur, Hyderabad, and Chennai.
With a new and improved supply system, business started booming and the average order value shot up from just INR 750 in 2016, to INR 1300.
Albinder Dhindsa – Business Model
Initially, Grofers (now Blinkit) was started as a Business 2 Business (B2B) model but later shifted to a Business 2 Customer (B2C) model. The best aspect of starting Grofers was the endless possibilities of using a hyper-local delivery network. By closing over 500 deliveries per day, Grofers soon became a formidable competitor in the market. By November 2021, the company was delivering 125,000 orders every day under the Grofers’ founder leadership.
After being in operation as an online grocery delivery service, Grofers introduced its express delivery system in India. This was done by building dark stores across multiple cities. In July 2021, the company reported a delivery of over 7000 groceries in under 15 minutes in Gurgaon. A month later after completing over 20,000 under-15-minute deliveries in over 10 cities, it introduced its 10-minute delivery program in over 12 cities. In December 2021, Grofers changed its brand name to Blinkit lining it with its vision to embrace quick-commerce.
But in 2022 in an effort to cut down their burn rate, Blinkit fired nearly 5% of their total workforce. The year before Zomate acquired a 10% stake in the company, and following multiple discussions in June 2022, Zomato acquired Blinkit for $568 million in an all-stock deal. The acquisition was completed in August 2022.
Albinder Dhindsa – Famous Quotes
“We are not too worried about competition entering the space. The space is not small. We provide customers with a service they didn’t know they needed. We will stay focused on the customer.”
“You invest in people, you don’t invest in ideas.”
“Each city is different. Every community requires customization.”
“Our motivation for starting this business was based only on convenience, but we realized soon enough that there are other reasons too why people come online to buy from us.”
FAQ
Who is the CEO of Blinkit India?
The CEO of Blinkit India is Albinder Dhindsa.
Where is Albinder Dhindsa from?
Albinder Dhindsa, the CEO of Blinkit, is originally from Patiala, Punjab, India.
Is Blinkit bigger than Zomato?
Blinkit is currently valued higher than Zomato’s food delivery business, according to Goldman Sachs, with a share price of INR 119 for Blinkit compared to INR 98 for Zomato.
What is Albinder Dhindsa’s education?
Albinder Dhindsa completed his education at IIT Delhi, where he earned his undergraduate degree before pursuing an MBA at Columbia Business School
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The emergence of the internet has transformed the car-buying experience positively, making it much more accessible and convenient than before. Today we have a lot of online portals that will take you through the process effortlessly. One such portal is CarDekho.
Founded by Amit Jain and Anurag Jain in 2008, CarDekho is a prominent car search venture that helps users find fitting new and old car variants and buy them without any hassles.
Here’s the StartupTalky article to know about CarDekho, its founders, competitors, business and revenue model, startup story, funding, investors, acquisitions, and more.
CarDekho, a creation of ‘GirnarSoft‘ founded by Amit and Anurag Jain, stands as a comprehensive online platform dedicated to all things automotive. Both the web app and the CarDekho.com website house a wealth of rich automotive content. This includes expert reviews, detailed specifications, pricing information, andcar comparisons, as well as an extensive collection of pictures and videos covering a diverse array of car brands and models available in India.
Furthermore, CarDekho provides valuable insights into the automobile industry, ensuring users stay updated with fresh content, recent launches, and industry trends.
CarDekho – How it Works?
CarDekho offers consumers a smooth 360-degree experience by acting as a virtual auto dealer. Users of the platform can peruse through a number of categories, future autos, and new releases. Furthermore, CarDekho has its own online store with a large selection of automobile accessories, including sun films, car stereos, stickers, floor mats, and more. In addition, it also provide car loan for new car used car and refinances for the existing car.
Company maintains an active automotive forum where industry professionals and reviewers respond to user-posted questions about cars in an effort to promote community involvement. In general, CarDekho creates a comprehensive and effective automobile platform by fusing technological know-how with user-friendly interfaces.
CarDekho is the product of ‘GirnarSoft’ owned by the founder duo, Amit and Anurag Jain. CarDekho is a web app that has almost anything and everything about an automobile. Both the app and the CarDekho.com website boast rich automotive content including but not limited to expert reviews, detailed specs, and prices of cars, comparisons of cars, pictures, and videos of an exhausting range of car brands and models available in India.
India’s automotive market grew rapidly, hitting $121.5 Billion in 2024 and expected to reach $247.4 Billion by 2033, with a notable compound annual growth rate (CAGR) of 7.13 % from 2024 to 2033. India is a well-known center for the production of automobiles worldwide. Its low production costs are a result of cheap labor, a plentiful supply of raw materials, and a depreciating currency. India is a key player in the global automotive industry, producing more than 4 million cars a year, making it the fourth largest automobile producer in the world.
CarDekho – Founders and Team
Amit Jain and Anurag Jain are the founders of CarDekho. Amit Jain is the CEO and co-founder, while Anurag Jain acts as the COO and co-founder at CarDekho. Umang Kumar has also been the President and co-founderof the company.
Amit Jain
Amit Jain – Co-founder and CEO at CarDekho
Amit Jain is an IIT Delhi alumnus from where he obtained a BTech degree before going on to join Tata Consultancy Services. Leaving TCS after serving the company for around one year, Amit joined Trilogy, where he went to be a Product Manager. Jain next started with GirnarSoft as the CEO and co-founder of the company, which he is still serving at the present. Amit Jain is also the CEO and co-founder of CarDekho.
Anurag Jain
Anurag Jain – Co-founder and COO at CarDekho
Anurag Jain is also an IIT Delhi alumnus who has obtained an Integrated Master of Technology in Mathematics and Computing. Jain was a Senior Systems Consultant at i2 Technologies after which he joined Sabre Holdings as a Senior Operations Research Analyst. Anurag is serving as the COO and co-founder at GirnarSoft.
Both the founder and his brother were born on November 12th, and they both finished their education at St. Xavier’s School in Jaipur. Both of them continued their education at IIT Delhi, where Anurag studied computer science and mathematics and Amit chose to major in civil engineering. Amit was interested in products and technology-related items because he and his brother had worked in the corporate sector for about eight years, having worked for businesses such as TCS and Trilogy.
Umang Kumar
Umang Kumar – Co-Founder and President at CarDekho
Umang Kumar was earlier the co-founder of Gaadi.com, but ever since the latter has been acquired by CarDekho, Kumar has been associated with the team, where he has been serving as the co-founder and President at CarDekho. Umang Kumar is an alumnus of Visvesvaraya Technological University, from where he obtained a BE degree in Computers. Kumar next went on to pursue a Post Graduate Diploma in Management from the Indian School of Business and then joined the Harvard Business School for the Naspers program in General Management, Strategy and Leadership. Before joining Gaadi Web as the co-founder and CEO, Umang founded another company, Accentium Web. During his career, Umang served a couple of other companies, 9.9 Mediaworx and ABP, where he served in key leadership positions.
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In January 2008, the Delhi Auto Expo inspired brothers Amit and Anurag Jain to start their own business to make buying a car easier. Cardekho.com was launched in March 2008, with the brothers starting the business from their garage foundation. As a result of their vision and influence on the automobile retail industry, their creation is valued at an astounding $1.2 billion.
In the early days of their startup journey, the Jain brothers encountered initial challenges, particularly in their outreach to potential customers through phone calls and emails. When they finally got their first client, their persistence paid off, and they embarked on a modest but eventually fruitful journey that led to several referrals and more jobs. CarDekho’s early success served as the impetus for its growth. Equipped with an expanding workforce, amassed capital, and a well-defined idea, they formally introduced CarDekho, signifying a noteworthy turning point in their endeavor to revolutionize the automotive sector.
CarDekho – Startup Launch
A lot of thought and conceptualizing went into building CarDekho after its launch. Even though the company had been launched, they kept their IT consultancy services ongoing because the founders wanted the primary income to keep flowing. CarDekho is one of those companies that take the consumer through the whole process, from the start to the end and during the process, to make sure that the customer is satisfied.
Like all the other entrepreneurial ventures, this company too was a little slow in the beginning, but when it geared up the pace, the founders never looked back. And soon enough, its numbers did the talking when they roared success out loud to the world.
CarDekho.com has launched many innovative features to ensure that users get an immersive experience of the car model before visiting a dealer showroom. The standout feature is the “Feel The Car” tool, providing a 360-degree view of the car’s interior and exterior. It goes beyond visuals, incorporating authentic sounds and feature explanations through engaging videos. It also offers features for searching and comparing cars by the makes, models, prices, features, and more. Furthermore, it also provides live offers and promotions in all cities.
Along with the above consumer product features, CarDekho.com provides a rich array of tech-enabled tools to OE manufacturers and car dealers. These consist of lead management applications for dealer sales executives, call tracking services, cloud-based sales performance monitoring, digital marketing assistance, virtual online showrooms, and outsourced lead management operational procedures that move customers from inquiry to sale.
The company’s vision is to establish a comprehensive ecosystem that links automakers, dealers, consumers, and associated businesses. There goal is to make it simple for customers to buy and sell cars while handling every aspect of car ownership, such as coordinating the purchase of accessories, tires, batteries, insurance, and roadside help.
CarDekho – Name, Logo and Tagline
CarDekho Logo
The naming of CarDekho has been done because the website aims to help users to browse through cars and car-related information. The tagline of CarDekho says, “Bharosa Kar Ke Dekho.”
CarDekho – Business Model
CarDekho operates as a pivotal online marketplace, serving as a nexus between buyers and sellers of automobiles. Its fundamental business model centers on offering consumers an all-encompassing platform for researching, comparing, and acquiring both new cars. As an information-based e-commerce platform, CarDekho delivers insightful content to cater to auto enthusiasts. Moreover, it seamlessly functions as an eCommerce platform, ensuring a seamless and convenient experience for individuals immersed in the car-buying process.
CarDekho – Revenue Model
The revenue model of CarDekho has been simple and clear-cut since day 1.
Here are the primary mediums through which CarDekho earns its revenues:
Advertising: To help automakers and dealerships advertise their goods and services, CarDekho provides a range of advertising alternatives. On its website and mobile app, the business charges for sponsored content, banner ads, and display ads.
Lead Generation: CarDekho seamlessly connects manufacturers and vehicle dealerships with potential customers, generating leads. The fee for each lead is customized based on the buyer’s budget and level of interest, ensuring a dynamic and value-driven cost structure.
Subscription Model: CarDekho presents a premium subscription model, “CarDekho Plus,” offering users exclusive benefits like discounts, free insurance, and extended warranties. The service comes at a fee, renewable annually.
Affiliate Marketing: Partnering with third-party companies, CarDekho promotes products and services related to cars, earning commissions for each sale through its affiliate links.
Subscription Model: CarDekho presents a premium subscription model, “CarDekho Plus,” offering users exclusive benefits like discounts, free insurance, and extended warranties. The service comes at a fee, renewable annually.
Affiliate Marketing: Partnering with third-party companies, CarDekho promotes products and services related to cars, earning commissions for each sale through its affiliate links.
In February 2020, CarDekho announced a secondary sale, enabling eligible employees to redeem 50% of their vested options through GirnarSoft Group’s ESOP Exercise. The company valued this cash-out at approximately $3.5 million. Notably, this marked the second instance of such a scheme in FY20, following the initial ESOP cash-out in April 2019, where CarDekho successfully bought ESOPs amounting to $2 million.
CarDekho – Challenges Faced
CarDekho’s early difficulties included raising awareness in a market devoid of significant competitors. In order to get past this, the business made significant marketing investments, provided discounts, and expanded into the used and new car markets, eventually leading the way as an online marketplace for automobile sales.
Faced with competition from the used car industry, CarDekho made a calculated decision to enter the new car market, becoming one of the first companies to provide an online platform for new car purchases. This action not only addressed the fierce competition but also strengthened CarDekho’s standing as a pioneer in automobile retail innovation.
CarDekho – Funding and Investors
So far, CarDekho has raised $501.1 million spread across 10 funding rounds to date.
Here are the funding details for CarDekho:
DATE
STAGE
AMOUNT
INVESTORS
October 13, 2021
Series E
$200 million
LeapFrog Investments
October 13, 2021
Debt financing
$50 million
–
December 5, 2019
Series D
$70 million
Ping An Global Voyager Fund
January 3, 2019
Series C
$110 million
CapitalG, Hillhouse Capital Group, Peak XV Partners
July 20, 2018
Series B
$2.99 million
Trifecta Capital Advisors
March 21, 2018
Series B
$2.5 million
Peak XV Partners
March 21, 2016
Venture Round
–
CapitalG
May 28, 2015
Venture Round
–
HDFC Bank
January 29, 2015
Series B
$50 million
–
November 27, 2013
Series A
$15 million
Peak XV Partners
CarDekho.com, which went live in 2008, was set up by a bunch of young, enthusiastic IIT graduates. Its investors include Google Capital, Tybourne Capital, Hillhouse Capital, Sequoia Capital, HDFC Bank, Ratan Tata, and Times Internet.
CarDekho – Mergers and Acquisitions
CarDekho has acquired 3 companies.
COMPANY ACQUIRED
DATE OF ACQUISITION
AMOUNT
Revv
Dec 1, 2023
–
Carmudi Philippines
Nov 28, 2019
–
Gaadi Web
Sep 30, 2014
$11 million
CarDekho – Partnerships
Girnar AI Innovations Lab
Amit Jain’s CarDekho and Girnar AI Innovations have teamed up to revolutionize customer support with AI-powered solutions. Their platform, Uservox.ai, uses voice bots, chatbots, and conversational tools to create personalized and efficient customer interactions. This collaboration aims to enhance engagement and streamline customer experiences.
CarDekho – Growth
In its fourth year, CarDekho had already served 2.5 crore visitors by January 2012, reaching the pinnacle of success with a record 1.7 lakh used car sales across India. The launch of its iOS app, following the Android version, resulted in 100,000 downloads within a month, doubling web portal visitors and tripling revenues. By 2014, with a team of over 600 employees, CarDekho expanded its offerings with portals like BikeDekho and PriceDekho.
In 2019, CarDekho significantly expanded its reach by collaborating with 3,000 used car dealers, 4,000 new car dealerships, ten financial institutions, and eighteen insurance providers in India. This strategic network aimed to simplify processes like used car financing and insurance, offering a more streamlined experience for both buyers and sellers in the automotive market. Concurrently, CarDekho introduced Gaadi by CarDekho and inaugurated CarDekho stores in the National Capital Region (NCR) in January 2019, diversifying its services to cater to a broader audience.
In September 2021, CarDekho shifted its strategy to require thorough home inspections before car purchases, resulting in the closure of over 20 stores. This move reflects CarDekho’s confidence in the efficiency of the home inspection model, prompted by changing market dynamics post the COVID-19 crisis and showcasing the company’s adaptability to industry challenges.
CarDekho launched Rupyy
This new platform offers a whole new horizon of financing alternatives to the customers and retailers of automobiles. With the birth of Rupyy, CarDekho aims to empower customers with easy and convenient methods to apply for and receive approval for their auto-financing requirements. According to the CarDekho statement, Rupyy is an end-to-end digital platform that is designed to make the loan journey smooth and hassle-free for customers.
Rupyy work via a QR code-based onboarding process at vehicle dealerships and loan companies. This QR code-based process guides the customers with a self-help path running video KYC, e-NACH, and e-Agreement technologies, which helps them approve their loans right at the point of sale within a few minutes.
CarDekho total expenses dropped from INR 2,921 crore in FY23 to INR 2,669 crore in FY24.
EBITDA
CarDekho Financials FY21-FY24
FY21
FY22
FY23
FY24
EBITDA Margin
-32.34%
-28.63%
-19.23%
-9.19%
Expense/Rs of Op Revenue
INR 1.44
INR 1.36
INR 1.25
INR 1.19
ROCE
-36.94%
-25.71%
-21.6%
-9.2%
CarDekho – Advertisements and Social Media Campaigns
CarDekho Campaign
The auto-tech startup CarDekho, along with brand ambassador Akshay Kumar, presented advertising campaign called “Sapna re.” The brand has emphasized in the advertisement the importance of fulfilling the desire of car ownership for Indian middle-class consumers. Akshay Kumar makes an appearance in a new guise in this campaign as a father who has promised to purchase his little child a car.
CarDekho – Awards and Achievements
Some of the noteworthy awards that CarDekho received in its early days were:
“Best” and “Most Popular” Auto Website of 2016
Website of the Year India 2014 in Automobile Category
Best Car Website of 2012
Most Popular Website of 2012
Website of the Year, India 2011 and 2012
Best Automotive Website of 2009
CarDekho – Competitors
Other online marketplaces in India that deal with and cater to the same set of the target audience are:
CarDekho was looking to expand its business to Southeast Asian markets as per news of 2021. The company, according to the co-founder and President Umang Kumar, was aiming to establish its leadership in the automobile ecosystem of the region. CarDekho has expanded its footprints into Southeast Asia following the acquisition of Carmudi, as per news on October 4, 2023.
Mayank Gupta, CarDekho Group CFO, regarding the startup’s growth plans, said, “With scale, leverage, efficiencies, and process improvements, we are trying to contribute towards our total EBITDA level profitability, and that is what we intend to achieve before the IPO.”
CarDekho has therefore kept its growth plans on track and expects great growth in the future.
CarDekho plans to file its DRHP by March 2025, aiming to raise $500 million (INR 4,100 crore) with an IPO valuation of $2–2.5 billion, nearly double its 2021 valuation of $1.2 billion. The company focuses on enhancing customer experiences through advanced, personalized technologies.
FAQs
Who is CarDekho Founder?
Amit Jain and Anurag Jain are the founders of CarDekho. Umang Kumar has also been the co-founder of the company since CarDekho acquired Gaadi.com.
Is Cardekho reliable? How are CarDekho cars?
Yes, CarDekho is reliable. It is, in fact, one of the most trusted places for certified pre-owned cars. CarDekho cars are thoroughly inspected and come with a 6 months warranty along with a 7-day money-back guarantee.
What is CarDekho net worth?
CarDekho has a net worth of $1.2 billion as of December 2024.
Who is Amit Jain?
Amit Jain is the CEO and co-founder of CarDekho.
What is CarDekho Revenue Model?
The primary mediums through which CarDekho earns its revenue are:
AdSense
Sponsored Advertisements
Commissions from the manufacturers and dealers
Affiliate marketing
Lead generation
Car insurances
How much funding has CarDekho raised?
So far, CarDekho has raised a total of $501.1 million spread across 10 funding rounds to date.
Nitin Konde
