With 1,50,000 cars sold at its branches annually, this auto-tech startup has revved up India’s used car sector
Imagine a situation where you are looking for a good deal to trade your old car but step back at the last minute from the transaction because you have minimal knowledge about the valuation and the process ahead. It often feels like you will end up having a bad deal even though the price you are getting is notable.
Identifying these pain points and challenges, Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal launched Cars24 in 2015 with a dream to offer hassle-free transaction and superior customer experience. “We wanted our customers to never face the last-minute buyer-back offs or deal with unrealistic and time-consuming rounds of negotiations,” says Chopra, co-founder, Cars24.
“To ensure that we are on the right track, we analysed the market and identified that car owners usually approach 30-40 potential buyers to sell their cars but face last-minute quibbles and back-offs. They never know the right price for their vehicle until they discuss it with people around them,” he informs.
This unorganised process and endless haggles consume a minimum of 4-6 weeks and that’s where Cars24 stepped in. Chopra says, “We solved this problem by creating a model that provides a way to sell the car with utmost convenience, without wasting their time. They can visit our store anytime they want by taking a prior appointment and can avail a free car inspection.”
He adds: “Once approved, we then start the bidding procedure and as soon as a customer agrees to a price, he gets paid instantly. From that point onwards, the vehicle is our responsibility and we take care of all the paperwork. Further, we also help in the smooth functioning of the market by connecting supply with demand channels and significantly reducing the supply bottlenecks and organise the system.”
All the vehicles are auctioned on “Cars24 Channel Partner Mobile App” for the company’s 10,000+ partners to start the bidding across the country. “As a result, we have successfully disrupted the market with a perfect blend of order, convenience and credibility on both demand and supply sides of the business,” says Chopra.
Even now, after so many years when the pre-owned car revolution has the entire automotive industry stumped, this unique startup is on a mission to go against the backdrop of the highly unorganised pre-owned cars market and streamline it in this country, especially for first-timers. Right from connecting supply to demand and helping customers sell their used cars, the company takes full responsibility of ownership transfer and after sale process.
With 300% growth in 2018-19 and more than 90% market share, Cars24 buys 13,000 cars a month which translates into Rs 3,300 crore per year and is targeting 1 million transactions by the end of 2019. “Being 150+ branches strong in more than 35 cities, we are not in any mood to stop anytime soon and intend to have 1,000+ branches in 120+cities of India by 2020,” he informs.
On the future journey, the Cars24 co-founder shares: “Apart from metro cities, we have plans to strengthen our presence across India including remote markets of Tier 2, 3 and 4 cities. As a next step, we have recently adopted franchise model for non-metro cities and intend to open more than 300 outlets in next two years. Endeavouring to be the industry dominant in upcoming years, we are in pursuit of break-even by the end of December 2019.”