major auto classifieds portals cartrade carwale and cardekho are betting big on used car business and financing of such cars as they expect this vertical to be their future growth engine even as they battle mounting losses cartrade which also owns carwale and cardekho which also owns gaadicom and zigwheelscom both plan to go public by 20192020 senior company officials said the new big business that we are focusing on is the financing for used cars in fy18 said vinay sanghi ceo of cartrade the company launched auto finance as a service in october in partnership with banks and nbfcs to document and evaluate used cars to enable loans auto finance will form 25 of our business by fy18 sanghi said cardekho is also busy building its used car business the new car business is our cash cow where we are already profitable but the growth engine for the future is used cars said amit jain cofounder at cardekhoi am investing in this business and im bleeding he told et the firm is also looking to build competencies in evaluation and financing for used cars jain expects the used car business to grow almost 90 in the coming year even as the company gears up for an aggressive marketing campaign for the vertical despite rising losses girnar software which owns and operates cardekho and its subsidiaries saw its losses swell more than three times yearonyear at rs 144 crore in fy16 the company posted operational revenues of rs 824 crore 75 more than fy15 cartrade and carwale too saw their losses almost double yearonyear in 201516 at rs 14765 crore and 908 crore respectively mxc solutions india which operates cartrade posted consolidated operating revenues at rs 3227 crore for fy16 while carwale which was acquired by cartrade in january 2016 posted revenues of rs 356 crore one of the core reasons for ballooning losses at all these firms is high marketing and advertising expenses cardekho incurred advertising expenses to the tune of rs 62 crore last fiscal year while cartrade and carwale together saw advertising and promotional expenses touch almost rs 161 crore high advertising costs are hitting newer players too some of them spending three times that of revenues droom spent rs 206 crore for advertising and marketing alone even as the threeyearold company managed to clock merely rs 47 crore in operational revenues in fy16 cardekho which counts capitalg google capital hillhouse capital tybourne and sequoia india among its investors will get into the market for one final round of funding before its ipo in 2020 the company has raised about 75 million so far by supraja srinivasan etauto published on feb 17 2017 at 0829 am ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons