CARS24 Eyeing $2 Bn Revenue by FY23

 Introduction

Used car market is evolving fast. New players and existing automobile giants are coming into the field of trading and financing pre-owned cars. Various factors like preference of personal vehicles over public transport due to the pandemic, ease of selling and buying cars online have resulted in various young buyers opting to buy a car with a limited budget. 

CARS24 USP

CARS24 claims that it can create a reliable and efficient way for car owners to sell their used cars at the best available price. The company was founded in 2015 by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal and Mehul Agarwal. CARS24 help consumers to book an appointment with any of their branches with a simple click and have the option to sell their car in a single visit.

The process becomes simpler for the buyer. Rather than doing window shopping for used cars, they could go through the catalogue which is available on the website, check the features, shortlist, pay a token amount and get the car delivered to a particular place at a particular time for a test drive. If the customer is interested in buying the car, they can pay the whole sum after the test drive or even at a later stage.

Funding and Expansion Plans by CARS24 

To accelerate the growth, cars24 raised $400 Mn at a valuation of 3.3 Bn. 100 Mn was raised through debt funding from some investors in India, Australia and the UAE. They have plans to launch in Saudi Arabia in CY22. They have set up refurbishment facilities across seven cities of India and invested close to $10 Mn in the refurbishment centres. 

CARS24 Has its Own Lending Subsidiary

CARS24 internal data suggests that around 50% of the buyers of used cars from CARS opt for loans against the industry average of 15%. As a part of its future growth plans, CARS24 has got into the lucrative lending business as well via its subsidiary CARS24 Financial Services. CARS24 has also recently announced its partnership with Bajaj finance for financing pre-owned cars for customers. The idea behind this is to improve financial flexibility and provide greater accessibility to their customers. 

Conclusion - About CARS24

CARS24 is a next generation marketplace for buying and selling preowned cars and bikes. The car buyers get to choose the best from a huge inventory of certified cars that could be home delivered at a click. At the same time, the sellers will also get the best price for their vehicles within hours because of an online auction system where thousands of dealers bid for the car. 

CARS 24 have brought together cutting-edge technology and countrywide tie-ups with usedcar dealers. It also has a deep understanding of what the buyers and sellers require. Whether you are planning to buy or sell the car, you would undergo an easy, transparent, fair and hassle-free process. The catalogue of CARS24 has almost every make and model you would be looking for. With all these systems and processes in place, the $2 Bn revenue looks well within reach.