Ashneer Grover just got replaced on Shark Tank India!
The new Shark in the Tank is co-founder of CarDekho, Amit Jain
He and his brother have taken CarDekho from 0 to 1.2 billion dollars in just 15 years
Here’s how they reinvented the way we buy cars in India:
The new Shark in the Tank is co-founder of CarDekho, Amit Jain
He and his brother have taken CarDekho from 0 to 1.2 billion dollars in just 15 years
Here’s how they reinvented the way we buy cars in India:
CarDekho was founded in 2008 by two brothers, Amit and Anurag Jain, who are car enthusiasts.
They owe its origins to a visit to the Auto Expo 2008, where they picked up brochures from stalls, returned to Jaipur, put it all in a database, and launched CarDekho within two weeks.
They owe its origins to a visit to the Auto Expo 2008, where they picked up brochures from stalls, returned to Jaipur, put it all in a database, and launched CarDekho within two weeks.
CarDekho is a car search portal which brings together buyers, sellers, dealers, and car lovers.
It offers everything from buying to getting financing and insurance.
However, in the initial days, it only offered users a platform for buying and selling used cars.
It offers everything from buying to getting financing and insurance.
However, in the initial days, it only offered users a platform for buying and selling used cars.
One thing to note here is that they launched it at the perfect time because soon after its launch came the global recession.
There were no major players in the market at the time and the demand for second-hand cars was higher than new cars. They grabbed this market opportunity.
There were no major players in the market at the time and the demand for second-hand cars was higher than new cars. They grabbed this market opportunity.
But that’s not all that contributed to its success.
The growth in demand for second-hand cars is not a by-product of a slowing economy.
India's used car market has been growing at a compounded annual growth of 11% with the aspirations and availability of financing options.
The growth in demand for second-hand cars is not a by-product of a slowing economy.
India's used car market has been growing at a compounded annual growth of 11% with the aspirations and availability of financing options.
Yes, aspirational products sell well in India, but we also need to understand the price-sensitive nature of the market.
Only 7.5% of Indian households own a car, whereas 49.5% of Indian households own a two-wheeler.
The used car market solves for both of these buyer motives.
Only 7.5% of Indian households own a car, whereas 49.5% of Indian households own a two-wheeler.
The used car market solves for both of these buyer motives.
Moreover, while buying a car, Indians check out its affordability, design, mileage, and resale value.
CarDekho provides expert reviews, detailed specs and prices, comparisons as well as videos and pictures of all car brands and models available in India.
CarDekho provides expert reviews, detailed specs and prices, comparisons as well as videos and pictures of all car brands and models available in India.
This business model also works perfectly for auto enthusiasts who love to change their cars frequently, consume content focused on cars, and can talk at length about cars.
The Indian market is unique and difficult to navigate, and CarDekho seems to have cracked the code.
The Indian market is unique and difficult to navigate, and CarDekho seems to have cracked the code.
A subsidiary of GirnarSOFT, it wasn’t their first venture.
Their approach was to start with services that could thrive without spending any money on marketing.
So, they started with three other ventures in astrology, jewelry, and stock trading— which were eventually shut down.
Their approach was to start with services that could thrive without spending any money on marketing.
So, they started with three other ventures in astrology, jewelry, and stock trading— which were eventually shut down.
They also learned the art of SEO so as to be able to put out good content. Not a dime was spent on marketing till 2013.
Out of the four, only CarDekho was successful, and so, the tough call had to be made.
They figured that if they’re going to fail, it was best to fail fast.
Out of the four, only CarDekho was successful, and so, the tough call had to be made.
They figured that if they’re going to fail, it was best to fail fast.
Amit says that the two did not let their ego get in the way of taking business calls.
Today, CarDekho is the largest online auto portal in India and wants to be one of the five largest in the world.
Currently, it is valued at $1.2 bn and has received $497.5 million in funding!
Today, CarDekho is the largest online auto portal in India and wants to be one of the five largest in the world.
Currently, it is valued at $1.2 bn and has received $497.5 million in funding!
Almost every buyer goes online to CarDekho to get all the information they need to zero in on the vehicle that’s the best fit for them.
Earlier, people did not know who should be trusted as a dealer or seller.
So, how was CarDekho able to build that trust?
Earlier, people did not know who should be trusted as a dealer or seller.
So, how was CarDekho able to build that trust?
Firstly, CarDekho is really into refurbishing each and every used car for consumers.
It has 2 refurbishment centers in NCR & Mumbai and plans to open 20 more across India.
Secondly, the founders put their SEO knowledge to use which helps build trust and credibility with time.
It has 2 refurbishment centers in NCR & Mumbai and plans to open 20 more across India.
Secondly, the founders put their SEO knowledge to use which helps build trust and credibility with time.
As they continue to provide objective, transparent and fair tools, information, and listings, they will draw more car buyers to search online.
Warren Buffett said that it would be tough to sell cars online. But CarDekho became the first startup in India to do that successfully.
Warren Buffett said that it would be tough to sell cars online. But CarDekho became the first startup in India to do that successfully.
Its investors include HDFC Bank, Google Capital, Ratan Tata, Hillhouse Capital, Tybourne, Sequoia, and Times Internet.
Till 2013, they chose not to raise funds because they didn't want to dilute the promotor equity.
They reinvested all the profits & cut marketing expenditures.
Till 2013, they chose not to raise funds because they didn't want to dilute the promotor equity.
They reinvested all the profits & cut marketing expenditures.
They stuck to one rule to become profitable: Never risk the base capital, and use corporate money with sanctity.
All of this came full circle at the Auto Expo 2014, where CarDekho had its own stall.
All of this came full circle at the Auto Expo 2014, where CarDekho had its own stall.
Their vision is to construct a complete ecosystem for consumers, manufacturers, dealers, and related businesses.
They want consumers to have easy and complete access to not only buying and selling cars but also to manage their entire ownership experience.
They want consumers to have easy and complete access to not only buying and selling cars but also to manage their entire ownership experience.
Since then, they’ve launched several other ventures. Some successful and some not. But failures never demotivated them.
Not surprisingly, names of most of these ventures capitalize on the recognition of the suffix ‘Dekho’ and the trust that CarDekho built over the last 15 years.
Not surprisingly, names of most of these ventures capitalize on the recognition of the suffix ‘Dekho’ and the trust that CarDekho built over the last 15 years.
“I have felt high almost every day,” said Amit. “We never lost hope,” added his brother, “We keep challenging ourselves.”
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