Used-car retail unicorn CarDekho has significantly scaled down the number of its regional stores and is now promoting operation from yards to achieve better unit economics.

According to a source close to the development, “the company plans to launch a new model in its used car retail where it will only act as a mediator between the seller and buyer instead of the current model where it onboards the used-cars on its own inventory.”

CarDekho website also shows only 3 regional stores across Bengaluru, Dudu and Chennai. “As a result of scaling down of regional stores, Cardekho has also asked majority regional center employees to relocate to Jaipur (company’s headquarter).

The company has also not onboarded any new used car in its inventory since August 2022 and the employees have been asked to clear the remaining inventory by December,” the source added.

To this, a CarDekho spokesperson said, “CarDekho Group is neither closing down any business nor laying off any employees. For effective retail operations, optimum inventory management along with right rotation and efficient inventory cycle is essential and we are managing inventory accordingly.”

“No regional operations are being closed. However to achieve better unit economics we are promoting operation from yards and for highest customer convenience and delightful experience we are facilitating home test drives,” he added.

CarDekho CFO recently said that the company is aiming to hit EBITDA level profitability before its planned IPO next year. ​​CarDekho co-founder Amit Jain has also been announced as the new shark in Shark Tank Season 2.

In August, CarDekho fired employees across junior and mid-senior levels turning focus to profitability. This move had majorly impacted roles like retail associates and inspection engineers. CarDekho had, however, cited performance as the reason for letting go employees. Earlier in May 2020 too, CarDekho had laid off 200 employees after the Covid outbreak impacted the automobile sector. 

The Jaipur-based company joined the unicorn club in October 2021 after raising a $250-million round of funding, which included $200 million in Series E equity and $50 million in debt. CarDekho was valued at $1.2 billion in this pre-IPO round. 

comment COMMENT NOW