Whether you’re looking for a new car or a used one, Cars 24 is the place to find it. The company is headquartered in Gurugram, Haryana, India, and sells more than 1,50,000 cars annually.
Reconditioning of vehicles for its transactions
Cars24 sells pre-owned vehicles in a single visit using a proprietary auction platform. It reconditions the vehicles and resells them to new owners. The company claims to be the biggest platform of its kind in India. The company has been named one of the decade’s most promising startups. It’s most recent funding round was led by DST Global and included existing investors.
Using data science, Cars24 sifts through hundreds of vehicles each month to identify the best deals. It then makes money on Value-Added Services (VAS) and its commission from the vehicles it resells.
Cars24 is also among the first companies to offer an online warranty for vehicles it reconditions. Its Mega Refurbishment Labs are found in seven metro cities across India.
It’s most recent funding round was led by a significant European fund. The company is still a tiny fish in a big pond, but its valuation has risen to a billion dollars. Cars24 claims to be the largest platform of its kind in India.
Expansion plans outside India
Founded by Mehul Agrawal, Gajendra Jangid, Vikram Chopra, and Anil Joshi in 2015, Cars24 is a digital used car marketplace that has emerged as the country’s first unicorn. The company recently raised a massive investment round of $400 million, which increased its valuation to $3.3 billion.
The company plans to invest over $100 million to expand internationally. It will use the funds to recondition cars, build brand presence in new markets, and invest in technology to transform the consumer experience. It will also invest in hooks to extend engagement with existing customers. The company has plans to expand into Southeast Asian, Middle Eastern, and South East Asian markets this year.
Cars24 is working to build a gold standard in the used car market globally. It is also using technology to create an all-digital consumer experience. The company recently partnered with Mahendra Singh Dhoni, the Indian cricketer, and brand ambassador. This partnership aims to make owning a car more manageable and accessible.
Warranty offer
Buying a new or used car is a significant investment. However, with that said, you can do a few things to reduce the risk associated with the purchase. One is to purchase an extended warranty. This will help protect you from unexpected repair expenses.
You can also try your hand at DIY mechanics. This is especially true if your vehicle hasn’t been driven more than 500 km. You’ll also want to keep a spare set of keys to make the best of your new purchase. This will make for a more memorable car ownership experience.
An online service will also provide you with a free comprehensive vehicle inspection report. In addition, the car may come with a complimentary service warranty. Depending on your vehicle, the contract may last anywhere from a few months to a few years. A car’s warranty may not cover accidental or consequential damage.
For example, a Cars24 car may have been used as a rental car, so it may not be a new car. As such, it may have been subject to the usual wear and tear. However, it may also have been a well-maintained model.
Business model
Founded by Vikram Chopra, Mehul Agrawal, and Gajendra Jangid, Cars24 is a used car resale business. Its vision is to create a reliable way for car owners to sell their used cars. Cars24’s business model is asset-heavy, allowing it to generate more customers and reduce risks. Cars24 charges a commission on each transaction, ranging from 4-5%. The company’s annual run rate has reached $1 billion. It is targeting 1 million transactions a year by 2021.
CARS24 provides end-to-end solutions for its customers. This includes online car buying and selling and facilitating vehicle financing. The company has a network of over 700 employees and over 150 branches in 35 cities in India. Cars24’s products have received an enthusiastic response from its audience.
The company aims to expand its network to 20,000 partners. This could be achieved by expanding operations in Tier 2 and Tier 3 cities. Cars24 has a Non-Banking Financial Company (NBFC) license from the Reserve Bank of India. Its most significant revenue sources are used/pre-owned car sales and financing services.
