Chennai: 2021 has been a good year for used car platforms with 3 startups – Mara, Cardekho and Spinny – joining Unicorn Club (more than $ 1 billion) this year.
Investors poured money due to strong growth in business, starting from 2x in 3 years to 8x in 10.
When Spinny collected $ 283 million earlier this month, he had more than double the assessment to $ 1.8 billion in just 6 months.
Likewise, Cars24 saw his assessment jumped 60% to $ 3.3 billion in just 3 months in December.
Cardekho collected $ 250 million in October, including $ 200 million serial-E equity and a $ 50 million debt in the Pre-IPO round, while Moving closed the first leg of the Pre-IPO growth rate which was ongoing up to $ 200 million.
According to the recent OLX automatic Religious study, the sales of the country used cars will almost double tally to 7 million units in 4 years from just under 4 million units at FY21.
According to estimates, the segment must end FY22 only below 4.4 million units.
“Used car markets will reach 10 million vehicles with FY30 in 14% CAGR – how many segments can promise such growth?” Given that only 6-8% of this is currently digital, “Most of the funds will enter into digitizing the larger part of the ecosystem,” said CEO OLX Autos Amit Kumar.
Startup Unicorn has added labor and markets when they improve technology infrastructure.
Founder of Spinny & CEO Niraj Singh said, “We are present in 13 cities and will expand to 25 cities in two quarters and we have switched from a 40-strong headcount on our technology team and up to 200.
We invest in improving.” “We increase our presence in Australia, Thailand and the Middle East and we will use these funds for further international expansion,” said Cars24 Founder & CEO Vikram Chopra.
Funding Floodgates and Unicorn aggression means that market leaders also step on the gas.
Mahindra’s first choice wheel, which has 50% of the shares in the organized used car market.
His CEO Ashutosh Pandey said, “We are planning an increase in funds to increase our superiority on the retail side.” Auto experts say investment optimism in more used cars with eyes in the future.
“Invest in used cars like FOMO – people feel they will be left from the next Run Bull,” Pandey said.
“What happens with cellphones in the past 10 years will also occur in the car that was previously owned.
The lack of a pandemic and chip is a tail wind for a new car but a long waitlist has encouraged consumers to switch to used cars.
This is a global developing category, at Where the ratio used for new is 3: 1 while in India 1.5: 1 and grow fast, “added Vikram Chopra from Cars24.