Recently company CEO and Co-Founder, Vikram Chopra stated that the company should break even soon saying, “We operationally make money on every car and our funding needs are not very high.”
Currently, the company sells around 13,000 vehicles every single month from their platform which is available in 35 cities and has 150 branches. By the end of the year, Cars24 intends to be in over 70 cities with 230 branches.
“We only have a 2% market share right now of the $30 billion used car market. In India, 5 million used cars are sold every year. Our objective is to take this number of 2% to 20% over the next 5 years,” said Chopra.
Recently Cars24 has been buying TV ads during the ICC Cricket World Cup which created an 85% increase in traffic to their website.
As Cars24 has found success in recent years, car dealers are finding their overall sales inquiries falling. The auto market in India is witnessing new car sales going through an intense slowdown.
Consumers aren't as willing to invest in a new car due to added safety regulations, a slowing economy, stress on city infrastructures, and monsoon issues. However, the used car market isn't suffering the same issues which is why companies like Cars24 are witnessing month to month growth increases.
Building a seller first model
Chopra and fellow Cars24 Co-Founder, Mehul Agrawal, also founded Fabfurnish, an online platform for furniture. After they founded this platform the two realized their next effort would need to focus on sellers.
“We have so many businesses in India that are solving problems for the consumer. Everyone always thinks demand first, we rarely think about the supply side of the problem. India actually has interesting supply-side problems where a seller doesn’t know where to go to sell his/her car,” said Chopra.
After starting up back with a single location in 2015, the company is now finally prepared to harness the used car sales market and begin making a profit.
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