Exclusive : CarDekho’s Parent Company Girnar Soft Lays Off Employees [Updated]

Girnar Soft, the parent company of CarDekho has laid off employees with immediate effect. The company currently employs more than 2000 individuals.

Sequoia backed GirnarSoft has cited cost cutting as the reason for this step and asked its employees to leave immediately with no notice period, according to sources.

The company has confirmed the layoff to NextBigWhat team.

Founded in 2007 by Amit Jain, Girnar Soft launched Cardekho in 2008. In last two years the company acquired five startups including Drishya360, Gaadi.com, Zigwheels, BuyingIQ, Help On Wheels.

Recently, the company also raised an undisclosed amount of funding from Google Capital with participation from existing investor Hillhouse Capital.

Update

There is no mass lay-offs. GirnarSoft has grown from a 1,200 strong team in March 2015 to 3,000 in March 2016, and we are continuing to hire. By the end of the first quarter of 2016-17 we will be a 3,500 member team. While we sit at a peak bank balance with some of the most reputed investors backing us, we recognize that this is an important time for our company to focus on core businesses. So in the course of managing better for success, we are internally realigning our management and resources to focus on core areas where we have the best bets for success. As part of this realignment, 60 positions have been impacted.  

2015-16 has been the best year for GirnarSoft. After hitting record numbers in 2014-15, we again doubled our revenue and traffic and launched several new verticals across the company. We made some strategic acquisitions to bolster our scale and capabilities through the year. We’re confident that our company is the most stable start-up in the country; we burn the least when compared to any other start-up of our size. [Amit Jain, CEO and Co-founder, GirnarSoft]

 

CarDekho Launches TrucksDekho, A Portal For Info On Commercial Vehicles

CarDekho has announced the launch of TrucksDekho, a portal dedicated to providing information surrounds buying and owning commercial vehicles.

At launch TrucksDekho will list information about products from 13 leading commercial vehicle manufacturers, allowing users to compare specs, features and read reviews of over 800 vehicles.

The website also provides users with contact details for more than 2,000 commercial vehicle dealers across India and 60 truck body makers.

CarDekho hopes to ride the imminent wave of improving commercial vehicle sales in India which is expected to grow at CAGR of 16%.

With smartphone penetration growing in the country, people are increasingly going only to purchase goods or research before buying something offline.

In this case, TrucksDekho will aid buyers of commercial vehicles with all the information on latest products they can buy.

HDFC Bank Invests in CarDekho

CarDekho has announced an investment in the company by HDFC Bank. This investment comes on the heels of a Series B funding of USD 50 million from Hill House Capital, Tybourne Capital, Sequoia and Mr. Ratan Tata.

HDFC Invests In CarDekho
HDFC Invests In CarDekho

“We expect digital to have a 25% share of auto loan financing within the next four years and are looking to facilitate a billion dollar of auto loans through CarDekho. Used Car Finance is a classic blue ocean market and CarDekho & HDFC Bank can together build that market. This investment by HDFC Bank is a validation of CarDekho’s leadership as a destination for car buyers and the enabling role we can play in transforming online auto finance,” said Umang Kumar, President, CarDekho & CEO, Gaadi.com.

The total size of the Indian car loan market is Rs.80,000 crore & HDFC Bank is a clear leader with 35% market share. CarDekho boasts of over 17 million visits on its portal every month which constitutes 10 million unique buyers. Further, close to 75% of the car buyers on CarDekho opt for a financing option.

In CarDekho and Gaadi, we see an integrated business across new cars and used cars. It is led by a passionate team, determined to provide one stop car purchase solutions to Indian car buyers,” said Rakesh Singh, Group Head, Investment Banking, Capital & Commodity Markets, HDFC Bank.

With nearly 5000 dealer partners, CarDekho & Gaadi claim to have the largest pan-India car dealer footprint amongst all auto portals.

“This unique partnership with HDFC Bank will help provide the Indian consumer a seamless experience in buying cars and obtaining financing. We want every car buyer in this country to have a pre-approved loan before they even finalise the vehicle that they are seeking. This partnership will re-define how consumers avail new and used car loan finance,” said Amit Jain CEO, Girnarsoft.

CarDekho Acquires BuyingIQ To Boost Analytics Strength

CarDekho has acquired BuyingIQ.com, an intelligent shopping engine to add analytics strength to its product portfolio. cardekho
This is CarDekho’s second acquisition within a year, the last one being the prominent auto portal Gaadi.com in Sep’14.
Buying IQ was founded in 2012 by IIT graduate Piyush Taneja and BITS Pilani graduate Saumitra Purohit, who were later joined by Avinash Kumar (ex-Booz & Co.). BuyingIQ.com, primarily a price comparison portal, took a more comprehensive analytical approach by bringing in data-driven buying recommendations. Since its inception, BuyingIQ has grown its user base multi-fold and at present, claims to serve over 1.2 Million users every month via its website and android app.

In our next step to become a global auto classifieds giant, Cardekho’s  aims to harness this strength of BuyingIQ in its services for car dealers and consumers. In the age of big data, great innovation for developing customer driven solutions comes from analytics. There are also synergies between BuyingIQ and other products of GirnarSoft such as PriceDekho.com and a lot of exciting work will happen on that front too.” Amit Jain, CEO and Co-founder of GirnarSoft

After UrbanLadder, Ratan Tata Invests In CarDekho

Ratan Tata has invested in CarDekho.com, which recently raised $50mn led by Hillhouse Capital with participation from Tybourne Capital and Sequoia Capital.

Ratan Tata Invests In Cardekho
Ratan Tata Invests In Cardekho
Ratan Tata is on an investing spree and his other startup investments include Urbanladder, Snapdeal and Bluestone – all mapping with Tata’s offline businesses.
The automobile space has created the largest market value among vertical classifieds and globally public and private companies in the space are together valued at over USD 50 Billion. Given that India is soon to become the third largest car market in the world, look forward to integration between Tata Motors and CarDekho.
Recommended Read : Lessons Entrepreneurs can learn from Ratan Tata: Responsible Leadership and Conscious Capitalism