CarDekho SEA is now strategically poised to enhance and expand its automotive and financial solutions across regional markets, including Indonesia, the Philippines, Singapore, Malaysia, Thailand, and Vietnam.
Singapore, December 13, 2024 – CarDekho SEA, the Southeast Asia division of India’s largest digital automotive solutions provider, CarDekho Group, has successfully raised US$60 million in its first external funding round. This investment was led by prominent growth and private equity investors Navis Capital Partners (Navis) and Dragon Fund. With this round, the company’s total funding has now surpassed US$100 million.
Headquartered in Singapore, CarDekho SEA operates across multiple Southeast Asian countries and has established itself as a leader in the automotive ecosystem. The company provides a wide range of services, including used car financing, refinancing, dealer inventory funding, and classifieds. With an ambitious vision, CarDekho SEA aims to become the largest, fastest-growing, and most comprehensive auto-financial services marketplace in the region.
The newly secured funds will be directed towards enhancing the company’s existing capabilities in Indonesia, particularly in used car and bike financing, as well as expanding its presence in the used auto financing sector in the Philippines. The funds will also support the growth of its classifieds platform, strengthening CarDekho SEA’s ecosystem to better serve distribution partners across the region.
CarDekho SEA plans to accelerate its growth by offering complementary solutions such as auto insurance, extended warranties, and financing options for electric vehicles. Its current offerings, including inventory funding for used car dealers and agent partners, will continue to be a cornerstone of its business strategy.
A Regional Powerhouse
CarDekho SEA has firmly established itself in the used auto financing market in Indonesia, holding a 3% market share and collaborating with over 40 financiers. Regionally, the company operates several well-known brands, including OTO Indonesia, Carmudi Philippines, and Zigwheels Philippines.
Since its launch in 2020, the company has achieved remarkable growth, processing more than 200,000 disbursements and surpassing US$1 billion in gross merchandise value (GMV). This represents a 50-fold increase in GMV within just three years. Additionally, CarDekho SEA has partnered with over 50 financiers and 20,000 dealers and retail agents, further solidifying its position as a market leader.
The company also leads in online traffic, with over 5 million monthly visits in Indonesia and 2 million in the Philippines. It maintains a strong presence in Thailand, Malaysia, Singapore, and Vietnam, ensuring wide regional coverage.
Leadership Perspective
Amit Jain, Co-founder and CEO of CarDekho Group, expressed his enthusiasm for the funding: “We are incredibly grateful for this investment, which reaffirms the strength of our approach. By adapting our proven Indian business model for international markets, we have been able to meet diverse consumer needs effectively. This journey is not just about expanding our footprint; it’s about delivering meaningful and accessible solutions to communities worldwide. This success is shared with our dedicated teams, partners, and customers who support our vision of becoming the largest auto-financial services marketplace globally.”
Leveraging Technology for Market Leadership
CarDekho SEA’s success is underpinned by its tech-driven approach to loan processing, its asset-light marketplace model, and strong partnerships with financiers. These advantages enable high approval rates, operational efficiency, and a competitive edge in the marketplace.
To sustain its growth, the company plans to integrate artificial intelligence (AI) and machine learning into its operations. These technologies will help mitigate fraud and credit risks, enhance data-driven decision-making for financing partners, and streamline the loan journey for consumers. Further investments in technology will enable seamless integration with financial institutions, ensuring a secure and efficient experience for all stakeholders.
With these innovations and a robust ecosystem for its partners, CarDekho SEA is well-positioned to become a key player in driving business growth across the region.
Looking Ahead with Strategic Partnerships
Umang Kumar, Co-founder and CEO of CarDekho SEA, highlighted the significance of the investment: “This funding represents a pivotal moment in our journey to transform auto-financial services in Southeast Asia. Partnering with Navis and Dragon Fund validates our progress and enables us to accelerate our mission of becoming the region’s leading marketplace for auto-financial services. This is just the beginning of an exciting growth trajectory.”
Rajendra Pai, Partner at Navis Capital, shared his optimism about the partnership: “CarDekho SEA’s innovative approach and dedicated team uniquely position it to address the significant underserved market in Southeast Asia. At Navis, we are committed to leveraging our expertise and network to support their growth. By enhancing financial inclusion, CarDekho SEA will empower consumers and create transformative changes across the automotive landscape.”
Ridhi Chaudhary, Chief Investment Officer at Dragon Fund, also commented: “We are proud to partner with the talented CarDekho SEA team and its shareholders. The CarDekho Group’s success in India has been inspiring, and under Umang’s leadership, we are confident that CarDekho SEA will replicate this success in Southeast Asia. With Dragon Fund’s MUFG backing, we are well-placed to help the company achieve its vision of becoming the region’s premier auto-financial services marketplace.”
With a clear vision, cutting-edge technology, and strong financial backing, CarDekho SEA is set to redefine the auto-financial services landscape across Southeast Asia. As it expands its reach and enhances its offerings, the company remains committed to delivering meaningful solutions that empower consumers and drive sustainable growth throughout the region.
