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In anticipation of the upcoming festive season, used car e-commerce platform Cars24 is planning to increase its inventory to over 10,000 cars.
Cars24, which recently raised $450 million to reach a $1.84 billion valuation, has big plans of international expansion with the money.
In an exclusive interaction with the BusinessLine , Gajendra Jangid, Co-founder & CMO, Cars24 said that the company has $100 million earmarked for their international expansion in 2021. The company has already set up operations in Australia and UAE this year and is setting its sights on the South East Asian and other Middle East markets as the next plan for this year.
Also read: Cars24 raises $450 million in its biggest funding round
The used car platform, which is already looking at tailwinds for growth from the upcoming chip shortage, is looking to become a top player in the used car space in the coming years. Cars24 has already captured around five per cent of the overall used car market share, ahead of major OEMs in this space. It is now looking to expand its domestic market share to be over 20 per cent of the used cars sold in India in the next 5 years.
International expansion strategy
Speaking about their international expansion strategy, Jangid explained, “The opportunity in the Middle East, stands at $40 billion, almost double that of India. We want to build a large auto company out of India which will dominate the used car space globally. This is the aspiration with which we decided to step out of India.”. UAE in particular has a huge appetite for early technology adoption according to Jangid. Cars24 has sold over 1,000 cars in the UAE since their launch in April. “Australian consumer used car market is 1.9 million sales per year. In Australia, the dominant used car buying process is manual: buyers may research the car online but need to visit their seller to complete the sale,” Jangid continued, which also poses a great opportunity for Cars24, as they believe they can introduce Australians to a simpler buying experience.
For their subsequent expansion into South East Asia and other Middle East markets this year, Jangid said that Cars24 will use its India playbook to expand globally and continue to invest in technology to transform the consumer experience.
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