Sequoia Capital to invest USD 15 million for GirnarSoftware stake
Venture capital firm Sequoia Capital is set to pour more than USD 15 million in funding to GirnarSoftware in exchange for a 20% stake in the tier II provider. The funding puts the value of the India-based IT firm at more than USD 50 million for its first financing round. The company is still scheduled to make a formal announcement about the fundraising.
According to The Times of India, the financing given to GirnarSoftware is the first for a consumer internet company with headquarters located outside large metros in India. GirnarSoftware is the owner of websites Cardekho, Bikedekho and Pricedekho.
Amit and Anurag Jain got the idea for its Cardekho website after visiting an Auto Expo five years ago. They had already established their outsourcing company which gave them the platform to venture to the consumer Internet sphere.
In his LinkedIn post, GirnarSoftware Chief Executive Officer Amit Jain said Cardekho is geared towards creating an experience for car buyers while creating business value to Indian dealers. He added, "To make it an end-to-end solution, we also facilitate car finance and insurance. In this e-commerce era, where most start-ups are losing money, we are one of the few who are able to run real business which generates profits."
Jain also claimed that Cardekho receives three million visitors each month and was the leading auto portal in India. Pricedekho, which allows consumers to compare prices on mobile phones, laptops and other consumer products, and Bikedekho which serves bike buyers, are two new sites from Girnar. It competes with Nirvana Ventures-backed Cartrade.com and Gaadi.com, a portal supported by South African internet firm Naspers.
According to The Times of India, an investor who had reviewed the Girnar deal concluded that the firm had healthy margins of more than 20%, making it a profitable investment.