Indian automobile classifieds portal CarDekho has retrenched around 200 employees amid the COVID-19 pandemic that has affected businesses across the country.
The Jaipur-headquartered company becomes the latest in the list of well-funded startups to adhere to job cuts as it undertakes measures to tide through the ongoing crisis. It has also initiated pay cuts across the board.
The development was first reported by news portal Entrackr.
CarDekho, which reportedly has over 5,000 employees including third-parties, is a car search venture that helps users buy cars. The company claims to have tie-ups with several auto manufacturers, over 4000 car dealers and numerous financial institutions to facilitate the purchase of vehicles.
CarDekho.com, which went live in 2008, is backed by investors including Google Capital, Tybourne Capital, Hillhouse Capital, Sequoia Capital, HDFC Bank, Ratan Tata and Times Internet.
Since the lockdown has been announced in India on March 25, the automobile sector in the country has seen no business. What’s making matters more uncertain is the lack of clarity over the next 6-8 months, with consumers preferring to pull their purse strings and adopting a ‘wait and watch’ policy.
CarDekho is said to have slashed salaries of those earning between Rs 2.5 lakh and 5 lakh by 12 per cent, while those getting between Rs 5 lakh and 15 lakh are said to get 15 per cent deducted salary from May to July, the Entrackr report added.
The company recently made headlines when it bought Indonesian media conglomerate Emtek Group existing 30 per cent in automotive website OTO.com for $7 million. OTO.com was formed as a joint venture between CarDekho and Emtek subsidiary KMK Online in 2015 with a 70:30 per cent share split.
CarDekho has operations in markets such as Malaysia, the Philippines, Indonesia, and UAE, apart from India.