Cars24 Case Study – India’s 1st Online Car MarketPlace

cars24 case study

Introduction:

Cars24 is the largest auto tech company in the automotive industry. It helps us to sell and buy second hand cars instantly. It was founded by Vikram Chopra and Mehul Agarwal in August, 2015.

Cars24 Introduction

Currently they are operating in more than 200 branches in 89 cities and their head office is located in Gurgaon.

History of Cars24:

Cars24 was started by FabFurnish founders Vikram Chopra and Mehul Agrawal in August, 2015. Their aim is to help the car owners to sell their cars instantly without any trouble.

And also help the dealers and people who are looking for a second hand car with no trouble and issues in a very less time and minimum paperwork and legal formalities. And apart from that you’ll also get expert assistance and from start to finish.

Services offered by Cars24

Cars24 offers buy and sell service of old cars and also free RC transfer. They help us to sell the cars with the best price and also provide instant payment with zero trouble in paper work or delay in the payments.

Servies offered by Cars24

They also provide financial loans to the businesses to help them to grow faster and also to  buy the dream car with a very fast process with their AI and machine learning. Currently they are having 3 product in their financial menu as well,

  1. Unnati: Give wings to your business to grow faster
    • Bid and Buy a car today from the CARS24 platform and pay later.
    • Lowest interest rates.
    • 100% digitized process to give complete transparency.
  2. Unnati+: Give wings to your business to grow faster
    • Buy a car to resell today from anywhere and get an instant loan.
    • Lowest interest rates.
    • 100% digitized process to give complete transparency.
  3. Pre-Owned Cars Loan: Buy your dream car with instant and easy loans
    • Loan approval in 24 seconds
    • Same day disbursal of loans
    • Lowest possible interest rates
    • Value added services to make your drives memorable

Funding Rounds:

According to the Crunchbasec.com, There are following funding rounds where the Car24 received funding:

Car24 raised the total of $193.8 million as the series round D came to end.

  1. Cars24 got their initial seed funding of an undisclosed amount from Finn Age Haensel.
  2. In June,2018 Car24 again raised the total funding amount of $50 Million where a total of 9 investors participated, named as KCK Global,Unbound, Kingsway Capital, Sequoia Capital India and etc.(Series C funding round)
  3. In Oct, 2019 The lead investors are Unbound and Toronto-based KCK Global, an existing investor in Cars24, both of which have put in an estimated $25 million each, and also they got the $19.6 Million from Cayman Island, Apoletto Asia $5.3 Million, Cyprus based VebdebitaTrading ltd., Phillip Fresie, DST Global, Extor Seeds.
  4. In Nov, 2019 Car24 raised the total funding amount of $3.1 Billion from the investing partner Global Car Group.

Business Model: How Cars24 earns

Cars 24 follows asset-heavy customers to business (C2B) model, where it buys used cars from individuals and dealers and sells them to other dealerships and individuals as well.

There’s no public information about it’s charges but according to Economic Times, unlike a listings-based classifieds platform, Cars24 enables the end-to-end transaction itself, charging a commission of about 4-5% for each transaction and also a small fee from the buyers as an registration free only. The firm has sold under 1,00,000 cars since inception in 2015.
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Major Competitors of Cars24:

  1. Droom
  2. Cardekho
  3. Cartrade
  4. Carwale
  5. Spinny
  6. Carnation
  7. Dealer Direct
  8. Checkgaadi
  9. Mahindra First Choice Wheels

Other Important details:

Cars24 Customer Care:
Contact No. 1800 258 5656
Email: [email protected]
Twitter: https://twitter.com/cars24india

Having more questions from Cars24, check out their frequently asked questions  section here.

We’re welcome your thoughts…please share your suggestions and feedback to us on [email protected]n.

Yash Jalan