CarDekho: A Layoff Case Study that Needs Attention
CarDekho, the leading automobile portal in India, has recently laid off 200 employees. The news went viral immediately, and people are raising their eyebrows in concern. The automobile industry is struggling amid the ongoing pandemic, and CarDekho’s decision is adding fuel to the fire. Therefore, this blog post aims to cover the layoff at CarDekho, its reasons, and implications
CarDekho is India’s leading car research and price comparison website. It was founded in 2008 by siblings Amit Jain and Anurag Jain in Jaipur, India. Since its inception, the platform has grown exponentially. Currently, CarDekho has over 800 employees across India and operations in seven other countries, including Indonesia, the Philippines, and Nigeria.
The company is dedicated to providing in-depth research and comprehensive information about car specifications, pricing, market trends, and reviews. CarDekho’s services minimize the guesswork in buying and selling cars, making the process smoother and hassle-free.
Funding and Investors:
CarDekho has received funding from multiple investors since its inception, totaling around $367 million. The investors include Sequoia India, Hillhouse Capital, Capital G (Google), and Sunley House Capital. In 2019, CarDekho raised $70 million in a Series D round, led by Hong Kong-based Sunley House.
CarDekho has been performing very well in the market. The company reported an annual revenue of INR 271 crores ($36 million), a growth of 44%, in the financial year 2019-20. The company has a loyal customer base, and its revenue has been growing continuously since its inception.
Layoff and Reasons:
On May 25, 2020, CarDekho laid off 200 employees from its Gurugram office. The company cited the ongoing COVID-19 crisis as the primary reason for the layoff. CarDekho’s business is based on advertising and leads generated by selling cars. Amid the pandemic, the automobile industry has taken a big hit. Fewer people are buying cars, and dealerships are shut, resulting in a decline in revenue.
In an email to the employees, CarDekho CEO Amit Jain stated that the company had been hit hard by the pandemic. He added, “We are taking very tough cost-cutting measures.” The layoff is one such measure to keep the company sustainable in the long run.
The layoff at CarDekho has raised concerns, mainly because the company has been performing well in the market. While the pandemic has disrupted business, the layoff of 200 employees raises questions about the company’s financial situation.
The laid-off employees, too, are worried about their future. Given the current economic scenario, finding a new job will not be an easy task. The layoff impacts not only the lives of the employees but also their families and dependents.