The pandemic has entirely changed the way people shop. There are thousands of used cars, second-hand cars, and new cars available for sale in all major Indian cities, and these are sold on both online and offline platforms.
According to Mordor Intelligence, the Indian used car market was worth $32.14 billion in 2021 and is expected to reach $74.70 billion by 2027, growing at a CAGR (compound annual growth rate) of 15 percent between 2022 and 2027.
With a growing number of people preferring individual mobility and more financing options available in the used car market, the market is set to grow considerably. The market evolved in India with the growth of the organised and semi-organised used cars sales sector.
Buying and selling used cars can be confusing. Here are some startups that are helping customers pick the right car for them and assisting with additional services to make the process smooth.
Cars24
Founded in 2015 by Vikram Chopra, Mehul Agarwal, and Ruchit Agarwal, Gurugram-based is involved in buying and selling used cars. It aims to transform the way consumers buy, sell, and finance used cars by leveraging technology at every leg of the consumer journey to solve genuine pain points and deliver a seamless buying experience.
The UAE team of CARS24
“The fact that we deliver the same experience to the consumer as ecommerce platforms, including refunds, has translated into people making big-ticket transactions to buy a car online,” Vikram said.
In December 2021, the startup raised $400 million, including a $300 million Series G equity round alongside $100 million in debt from diversified financial institutions led by Alpha Wave Global at a $3.3 billion valuation, to fuel the brand’s expansion in the Middle East, Southeast Asia, and Australia and further strengthen its foothold in the Indian market.
The startup has built a strong technology backbone that features various first-of-its-kind offerings, such as an innovative auction format, a powerful algorithm, and a state-of-the-art proprietary inspection app that matches supply and demand across the country.
Spinny
Founded in 2015 by Mohit Gupta, Niraj Singh, and Ramanshu Mahaur, the Gurugram-based online used car retailing platform aims to bring about transparency and convenience in the car selling and buying process in India.
Founding Team of Spinny
Spinny’s online-to-offline (O2O) model allows customers to discover cars online on its website, and make the final purchase offline at a Spinny Car Hub.
“With the changing needs and expectations of the customer, Spinny’s full-stack capability allows us the control to set industry benchmarks in terms of a transparent and simple car buying and selling experience. We are super excited to see our existing investor, General Catalyst, double down on their conviction and lead this round.” Niraj said.
In November 2021, Spinny turned unicorn and raised $283 million in a Series E round of funding from new and returning investors to step up customer experience, product capability, strengthen technology, and build teams across functions.
Droom
Founded by Sandeep Aggarwal and Rishab Malik in 2014, New Delhi-based online automobile marketplace is an AI (artificial intelligence) and data science-driven ecommerce platform for buying and selling used vehicles, which has also experienced explosive growth.
Sandeep Agarwal, Founder, Droom
“Over the past seven years, we have invested millions of dollars and thousands of human hours to build a full technology-based end-to-end transactional marketplace for buying and selling of automobiles online. We have developed the complete technology-based machinery starting from first-mile services such as OBV, ECO, and History to mid-mile services like loan & insurance and last-mile services like doorstep delivery,” said Sandeep.
In July 2021, Droom entered the unicorn club, raising a growth round of up to $200 million ahead of its IPO.
CarDekho
Founded by Amit Jain, Anuraj Jain and Umesh Hora in 2008, Jaipur-based auto-tech company is a prominent car retailing platform that helps users buy cars that are right for them. It serves as a one-stop shop for customers to sell pre-owned cars.
Co-founders Cardekho
The startups operate various leading auto portals like CarDekho.com, ZigWheels.com, PowerDrift.com, Gaadi.com, BikeDekho.com and more.
In October 2021, CarDekho turned unicorn, raising $250 million in a pre-IPO round with a $1.2 billion valuation.
“CarDekho, from being a car research portal, has evolved to become a complete ecosystem for car buying, lifecycle management, and selling. We are committed to empowering our customers and providing them with a convenient and hassle-free experience.” Said Amit.
Cartrade
Founded in 2010 by Vinay Sanghi, Mumbai-based is an automotive platform for buyers and sellers of new and used vehicles.
The CarTrade Team
The startup offers its services across India with a strong network of more than 4,000 dealers. Its features include certified used cars, used car price information, on road dealer prices, and expert reviews that empower customers.
The platform connects different stakeholders across the value chain, building an automotive digital ecosystem for buyers, dealers, banks, automakers, insurance companies, and other stakeholders.
In September 2021, Cartrade launched a tailor-made platform ‘CarWale abSure’, to provide a hassle-free buying and selling experience to customers under one roof.
