CarDekho.com, a leading company in the automotive classifieds and software as a service (SaaS) space, said that the group's revenue for the fiscal year ending March 31, 2024 (FY24) slipped 11 percent year-on-year due to cutthroat competition and tough market conditions.

The auto-tech marketplace CarDekho Group stated that its topline suffered a ₹210 crore year-on-year dip to ₹1,700 crore FY 2024 from₹1,910 crore FY 2023. Despite a fall in revenues for the year ended March, the company has been able to cut its net loss to₹295 crore compared to₹400 crore for the last year.

Revenue Decline: What’s Behind It?

The revenue decline is mainly because of the low demand growth associated with the used car segment, where CarDekho is an active player. Also, pressure in marketing expenses could not be overlooked, together with a dip in advertising revenue, another thing that compounded the setbacks.

Economies lead to a decrease in losses.

The only ray of hope in CarDekho’s FY24 numbers is the company’s ability to hold its ground on costs. Through implementing cost control and cutting unnecessary expenses on operation, the leakage becomes less, and the company can cut the loss by nearly 26%.

1. Operational Expenses: Lowered by 18% from the estimated fiscal year FY23.
2. Focus Areas: Part of the savings was due to increased investments in artificial intelligence tools, as well as improving customer engagement experiences.

Future Plans and Strategy

To regain growth momentum, CarDekho plans to:

• Expand Financial Services: To increase the sources of revenue and improve and expand the vehicle financing division.
• Increase Tech Integration: AI and machine learning should be used to enhance other user experiences.
• Widen Dealer Network: Deem the importance of expanding the number of dealerships to Tier II and Tier III cities.

What It Means for the Market

Even for the CarDekho, the auto market in India is tremendous, but the latest stats show that growth is tough here.

Currently, excessive operational costs and growing, negative net operating cash flows demonstrate that the firm is on the right track to cutting costs and eliminating losses to achieve sustainable revenue growth by FY25. It therefore remains to be seen how these stated strategies will be transacted by the investors and industry analysts.