Consumers in Mumbai, India usually don't buy or own black cars. However in Delhi, black SUVs sell really well. Mumbai also sees their cars sell very slowly thanks to their proximity to the sea and how easily rust can build up.
These are few of the crucial analytical tools used by online marketplace Truebil.com, which sells used cars. Launched five years ago, the Mumbai-based startup which has operations in three cities (Mumbai, Delhi and Bengaluru), say it is on course for a multi-fold growth in the immediate future.
Truebil Co-Founder Shubh Banal said, “We have grown five times from last year. Currently we are doing $4.5 million of revenue every month while GMV (gross merchandise value) is around $6 million. Last year the average run rate was $600,000 a month. The target for this year is to grow again by five times.”
The young startup recently closed a $15 million funding which it raised from “Japanese and existing investors”. These funds will be used for opening new geographies and for going deeper into the existing market.
A little more than a year back, the company ventured into the brick and mortar medium from being an exclusive online marketplace company. It now buys cars at auctions, refurbishes it and makes a double-digit margin after selling it to buyers.
But, unlike its competition, Truebil heavily relies on data on consumer-buying trends to help it choose its inventory wisely.
For instance, Bansal said, “I have a $2.5 million inventory risk on my balance sheet. That’s why we have data analysis. Netflix and Amazon have a movie list that is high on viewership with predictable viewers. Same way we have it for cars. I know Honda Jazz sells very well at high price. So I will procure Jazz as against an Accord that does not sell well.”
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