CARS24's Digital Revolution: Transforming the Used Car Buying Experience

Company Highlights of CARS24

CARS24, founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal, has rapidly grown into a leader in the online used car marketplace. It operates across India, Australia, Thailand, and the UAE, providing a seamless platform for buying and selling pre-owned vehicles. The company's unique business model involves buying used cars from private owners and reselling them through its network of dealers, ensuring a smoother transaction process compared to traditional classifieds.

Key highlights include:

• Unicorn Status: CARS24 achieved unicorn status after raising $200 million in a Series E funding round in 2020, reaching a valuation of over $1 billion.
• Technological Innovation: The platform uses AI, big data, and tech infrastructure to streamline car valuation, pricing, and the buying/selling process.
• Expansion and Growth: The company has scaled rapidly, facilitating over 400,000 transactions and continuing to expand its geographical footprint

  About Us

  CARS24 is revolutionizing the way pre-owned cars are bought and sold. The company aims to provide a hassle-free, transparent experience with competitive pricing, customer-friendly policies, and a robust digital platform. By cutting out intermediaries, CARS24 ensures customers can buy cars with confidence, offering services like instant car valuations, quick transactions, and end-to-end digital support.

• Their online platform guarantees a more secure and efficient process compared to traditional car dealerships, with a strong focus on customer service, ease of use, and fair pricing

  Industry Overview

  CARS24 operates in the used car industry, which has seen significant growth, especially in emerging markets like India. The used car sector is gaining traction due to changing consumer preferences, cost-effectiveness, and the availability of high-quality second-hand vehicles.

  In India, the market has been expanding rapidly, with digital platforms like CARS24 playing a pivotal role in disrupting the traditional car-buying model. This is driven by factors like increased internet penetration, rising disposable incomes, and the desire for hassle-free and transparent buying processes. The online used car market is projected to grow further, driven by innovations in technology, financing options, and improved customer experiences.

  Founders and Team of CARS24

  CARS24 was founded in 2015 by Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal. The team brought together a diverse set of skills to transform the way people buy and sell pre-owned cars.

  • Vikram Chopra: Co-founder and CEO, Vikram had previous experience in the online retail and e-commerce sectors before starting CARS24. He played a pivotal role in CARS24's strategic vision and expansion.
  • Mehul Agrawal: Co-founder and CTO, Mehul was responsible for the technical architecture of the platform, which leverages AI and big data to streamline the car-selling and buying process.
  • Gajendra Jangid: Co-founder and COO, Gajendra handled the operational side of the business, including supply chain management and logistics.
  • Ruchit Agarwal: Co-founder and CFO, Ruchit oversaw the financial operations and helped secure funding for the company's expansion.

    Mission of CARS24

    CARS24’s mission is to create a transparent, fast, and customer-centric platform for buying and selling pre-owned vehicles. They aim to simplify the used car market by leveraging technology to eliminate inefficiencies, ensuring both buyers and sellers get the best deals in a hassle-free, seamless experience. The platform strives to bring trust and transparency to the traditionally opaque used car industry.

    Vision of CARS24

    CARS24 envisions becoming the global leader in the online used car marketplace, disrupting traditional car dealerships with innovative, technology-driven solutions. They aspire to build a fully integrated, end-to-end digital platform that empowers users to buy, sell, finance, and insure cars with ease, creating a global ecosystem where people can confidently purchase high-quality second-hand cars.

  • Startup Story of CARS24

    CARS24 was born out of the founders' desire to solve the inefficiencies and lack of transparency in the used car market. Before launching the platform, the used car buying experience was riddled with challenges like unclear pricing, uncertain car conditions, and long negotiation processes. The founders saw an opportunity to bring the industry online, making the process faster, transparent, and hassle-free.

    The company began by offering car owners an easy way to sell their used cars at fair prices, without the need to negotiate with dealers. They built a robust technology infrastructure to provide instant car valuations and streamlined the paperwork process, providing users with a simple and efficient experience.

    CARS24 started with a focus on the Indian market, where the demand for used cars was growing rapidly. It quickly gained traction due to its transparent pricing model, tech-driven solutions, and end-to-end service, including financing options and vehicle refurbishment.

    Over the years, CARS24 has expanded its services across several countries and raised significant funding to scale its operations. By 2020, it became a unicorn, valued at over $1 billion, following a $200 million Series E round of funding.

    Goals of CARS24

    1. Expansion: CARS24 aims to further expand its presence across key international markets, including countries in Southeast Asia, the Middle East, and beyond.
    2. Customer Satisfaction: Focus on enhancing customer experience through continuous improvements in tech infrastructure, customer service, and product offerings like warranties, insurance, and financing.
    3. Innovation in Technology: CARS24 plans to continue innovating by utilizing AI and big data to refine its pricing and car valuation algorithms, ensuring more accurate pricing and better decision-making for both buyers and sellers.
    4. Sustainability: As part of its long-term vision, CARS24 also aims to reduce its carbon footprint by promoting the reuse of cars and reducing the environmental impact of new car manufacturing

• Business and Revenue Model of CARS24

  CARS24 operates primarily on a business-to-consumer (B2C) and consumer-to-business (C2B) model. It buys used cars from individuals (private sellers) and then sells them to dealers or consumers through its platform. The company acts as an intermediary, simplifying the buying and selling process with its tech-driven platform.

  1. Revenue Generation:

     • Transaction Fees: CARS24 charges a commission on every sale, typically ranging from 4-5% per transaction.
     • Financing and Insurance: It offers car loans and insurance products, generating additional revenue through commissions and partnerships with financial institutions.
     • Service Fees: Additional revenue is generated through services like vehicle inspection, refurbishment, and warranty packages that ensure a higher margin per car sold​
• B2B Transactions: In addition to direct consumer sales, CARS24 also sells vehicles to dealerships at wholesale prices.
• Subscription-Based Services: In some markets, they also offer a subscription service that gives customers access to a fleet of vehicles for short-term us

• Tech-Driven Business:
  CARS24 utilizes artificial intelligence (AI) and big data to enhance its car valuation and pricing algorithms. The platform also offers features like online car inspections, which further streamline the process. This approach has helped the company scale rapidly and maintain transparency in pricing and valuations​

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Fundings and Investors

CARS24 has attracted significant investment since its inception, helping fuel its rapid growth and expansion into international markets.

• Funding Rounds:
  • Series A: In 2015, the company raised $1.5 million in its first round of funding.
  • Series B: In 2016, it raised $6 million from investors like Sequoia Capital India.
  • Series C: By 2018, CARS24 secured $20 million in funding led by Sequoia Capital and Apoletto Fund.
  • Series D and E: In 2020, the company raised $200 million in Series E funding at a valuation of $1 billion, marking its unicorn status. This round was led by investors like Exor Seeds, Sequoia Capital, Alpha Wave, and DST Global​
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These funds have enabled CARS24 to expand its operations into countries like Australia, Thailand, and the UAE, and to further develop its technology stack to support greater efficiencies and customer satisfaction.

Investors

CARS24’s key investors include prominent venture capital firms and institutional investors such as:

• Sequoia Capital
• DST Global
• Exor Seeds
• Alpha Wave Global

Here are some of the latest updates about CARS24:

1. Expansion in the UAE: CARS24 has significantly enhanced the online car-buying experience in the UAE since its entry in May 2021. The company has sold over 7,000 cars, achieving a 100% online sales milestone. This success was marked by a prestigious Burj Khalifa campaign, where CARS24 introduced an innovative online platform for car purchases in the UAE​

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2. High-Value Sales: The company has also made headlines by selling high-end vehicles such as a Lexus LX 570 for AED 423,199, alongside budget options like a 2007 Honda Civic for AED 5,000. This showcases their diverse offerings ranging from luxury to budget-friendly vehicles​

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3. Company Leaders' Insights: CARS24's founders, Vikram Chopra and Ruchit Agarwal, have shared their journeys in various media appearances. They highlighted their experiences transitioning from IIT graduates to building one of India's largest car-selling platforms​

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