The Cars24 startup has made the task of selling cars a lot easier than before. It was founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid and Ruchit Agarwal with the vision of organizing the highly unorganized used cars industry.
It was seen according to the statistics obtained, that the number of cars being sold every year was about 30-35 lakhs whereas the number of cars being bought were only 20 lakh. Also, the used car business was a $20 billion market in India and had a growth rate of 25%. This made the founders realize that though the demand for used cars was a lot, the supply was considerably less.
This gave rise to one of the fastest growing, used marketplaces in India, Cars24. We know about its huge success but do you know the journey behind it?
The journey towards success:
Cars24 founded in 2015 was the first startup of the industry that conducted a “transaction-led” approach of selling cars. It consists of a portal where a potential car owner can sell their car privately with the help of secure transactions. They can complete the whole process in less than 2 hours and receive the payment almost instantly. On the other hand it has connections with over 100 used car businesses that buy the used parts online through mobile auctions.
Being just 5 years old, it completes over 100,000 transactions per year. Cars24 buys the parts from over 15 cities across India and sells cars to over 100 cities.
Currently the company has crossed 150 branches across 35 cities in India and has a team of over 700 employees!
Funding received by Cars24:
Cars24 has received a total funding of around $193.8 million across 4 funding rounds. In June 2018, it managed to raise around $50 million from investors like KCK, Kingsway Capital, MPGI, Sequoia Capital India. Later in October and November of 2019 it raised $100 million and $44 million respectively from investors like KCK Global, Unbound, Global car group, etc.
According to the founders, this huge funding received would be used to strengthen the start-up’s presence in newer cities of the country with increase in technology and new scale franchise models.
Speaking on the latest capital infusion, Vikram Chopra, Co-founder and CEO, of CARS24, had said, “We are changing the transaction ecosystem for the pre-owned car marketplace in India. With this investment, we have not only strengthened our vision to become India’s largest pre-owned automobile company but have also given one more reason for our customers to have faith in us.”
“Our motive is to expand across India and give our customers a hassle-free selling experience. Any car owner can sell their car at a great price in less than an hour by driving down to the nearest CARS24 branch. To make it a reality, we’ve been investing heavily in making our tech more robust, as well as, convenient and frictionless for all,” Vikram added.
Moreover, Cars24 has been evolving rapidly over the past 5 years with even advanced technologies that keep up with the changing needs of the market.
So, are you an entrepreneur searching for inspiration to open your own company? Well I am sure the story of this startup will be a source of motivation for your entrepreneurial advancements. If you have a business idea, we would love to hear from you in Happython 2020!
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Event date: 13th December
Last date for registration: 5th December
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