“Car bechni ho, toh Cars24″ how many of you always wonder why this venture is focused on buying instead of selling?
Every brand on TV and other advertisement focuses on sales, but Cars24 asks us to sell our used car to them! Let’s dig more about the company.
About the Company – Cars24
CARS24 is an online used car marketplace. The company sells more than 1.5 lakh cars per year and is one of the most significant organized players in India’s used car segment. The Cars24 online platform provides the transaction, and the company also has an offline presence.
Cars24 services include RTO and ownership paperwork, apart from selling used cars. The company also offers an online auction platform to businesses looking to sell their used cars.
Until 2019, across more than 70 cities, the company operated around 200 branches and tied up with over ten thousand partners across 230 cities.
About Founder
Cars24 was founded by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal as an online platform to buy and sell used cars in 2015. In 2021, the company expanded operations internationally in several countries, including Australia and UAE.
Vikram Chopra
The Co-Founder and CEO of CARS24. He is a former Co-Founder of FabFurnish and Investment Analyst of Sequoia Capital and was Business Analyst at McKinsey & Company.
Mehul Agrawal
The Co-Founder and COO at Cars24. Founder and Managing Director at fabfurnish.com, Consultant at The Boston Consulting Group (BCG) Summer Analyst at Morgan Stanley.
Gajendra Jangid
The Co-founder and CMO of CARS24 are in charge of developing the strategy for advertising, branding, and customer outreach.
Ruchit Agarwal
Co-Founder and CFO at Cars24.
Business Model of Cars 24 :
Cars24 earns money from commission from sellers and buyers by providing services like an intermediary. Over 3.5 million pre-owned cars are sold every year in the country, where this number is only 2 million for new cars.
The used car market in India is much bigger, so the demand is also higher, but the supply is restricted compared to demand. So they gave preference to supply instead of demand.
Even though the company has competition from other big players, they all are lead-generation platforms, whereas Cars24 also supports transactions.
They buy cars at the best possible rates from the retail market and sell them in bulk to their partners like local used car malls, used car showrooms and make money.
Also, they give a six-month warranty on used cars, take care of paperwork services, and provide loans for buying used cars through its subsidiary Cars24 Financial Services, which keeps them one step ahead among other players.
Read More: Spinny, A New-Age Used Car Buying Platform in India
About their Fundings and Investment:
In 2018, the company raised $ 50 million in a combined Series A and B funding round. In the series C funding round, it raised $50M, and In 2019, the company raised $100M in a Series D funding round.
The Investors of Cars24 include Cricketer Mahendra Singh Dhoni, Kingsway Capital, Sequoia Capital, Exor Seeds, Unbound & Moore Strategic Ventures, and KCK. Cars24 raised $200 million in the Series E funding round.
In 2020 and became a unicorn startup as it was valued at over $1 billion.
CARS24 raised $450 million in Series F funding round. Out of which, $110M debt from diversified financial institutions.
About their Achievements:
Cards24 received a Non-Bank Financial Company (NBFC) license from RBI in 2019. It established Cars24 Financial Services, and it provided rupees 400 crores in FY2019-20, which added 22 crores additional as return on investment in terms of interest till 2020.
The loan facility is available to the car dealer and end customers in the used car segment.
About their Plans:
With the latest Investment, CARS24 is planning to expand its global presence and further build its cars, bikes, and financing business in India while investing in technology that delivers the best customer experience possible.
Cars24 has reportedly begun talks for an IPO and plans to make a stock market debut in the coming year or two.
Conclusion:
Cars24 found the difference between demand and supply, and also they found missing points by already available sources in the sector. Plan for solutions and provide the solution which adds value to daily life requirements.
When buying a used car, we always prefer a card from a trusted one instead of an unknown person found on social medial or lead generation platforms.
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