Vikram Chopra, Cars24 – NOAH18 London

Vikram Chopra, Cars24 – NOAH18 London


Hi everyone, good morning. It’s great to be here really excited to share our story especially, you know, we have been around for three years now and this is for the first time that we are actually Coming out in the open and and speaking about what we do so really really excited to share And it’s an honor to be after Auto one because that’s one company that’s really inspired us. We look up to them. So What are we doing? We are in our mind building India’s largest auto company And when I say India’s largest auto company, I don’t mean just largest used car company but actually largest auto company that can be bigger than the biggest OMS in India such as Maruti and Hyundai and Why do we believe we can do that? I think it goes down to the size of the market. India is all set to become world’s third largest auto market Just behind us and China and in terms of this in terms of the value It’s it’s today a thirty billion dollar market Going to be one hundred billion dollar in next decade in terms of units sold it’s today 4 million units per year in used cars going up to be 14 15 million units and in a decade’s time and What is the reason for this growth? I think the simple answer to that is that the per capita ownership of cars in India is extremely low It’s like 50 cars per thousand people compared this to Developed economies. It’s always over 500 cars per thousand people. So there’s a huge huge head room for growth of used cars in India and How do we build India’s largest auto company? it which is built on back of used car it always starts with supply if you have supply you could actually rule the entire value chain, but you got to start with the supply and supply in a used car market by the nature of it is extremely fragmented because The supply is with each individual with each owner of a used car. So if you can Solve the pain point of selling a car. You can actually consolidate the supply and you could actually build a large Supply base and on back of that you could actually build a large business and How do we solve for that pain point for the sellers? You know, I would I would quickly just take you through the video to explain. What do we really do? Sorry fake inspector, he got the best price to cycle but So that’s really the summary of what we do It was in Hindi, but I hope you’ve got to catch some of the subtitles. But basically what happens, is that a customer walks to our branch gets the car inspected and Right here is where the world of difference is because when you try and sell your car in offline market It’s a very bad experience though Nobody greets you properly everybody sees you as if if it’s your problem that you’re wanting to sell your car Whereas with us we sit you down we offer you coffee, just to like simple basics that make you feel really nice And then we do the inspection And again, we not only share the inspection report with the customer But we also highlight not just the things that are not so good about your car But also things that are really nice about your car like, you know, you you just got your tires replaced You know, your engine is still working very fine. So it’s a very very objective assessment of the car And then as you saw in the video, we run a real-time online auction It’s it’s a mobile based auction You know, we have thousands of dealers all over India who participate in those auctions and we discovered the price for that car Right there in 24 minutes. So that’s how we get the price for the car We offer that to the customer and if the customer accepts the price the deal is done right then and there Customer gets the money in his bank account and boom it’s done So a process that could for a car owner take four weeks five weeks is literally crunched into an hour And we have tons of happy customers that includes, you know, Bollywood guys head honchos of corporates and and musicians And for the dealer again, the experience is fantastic It’s seamless it’s completely online All they need to do is is to bid on the car in real time once they’ve in an auction They transfer the money to us electronically. So there is no paperwork. There is nothing offline It’s all it’s all on our mobile app that is designed specially for the dealers and then the car gets delivered to their showroom, right? After they transfer us the money, so it’s all online. It’s very efficient and and dealers just love that and Speaking a little bit more about the dealers. This is how they look in India. We do not have large showrooms We don’t have organized dealers. We don’t have Franchisee dealers who have some sort of a brand it’s a completely unorganized market This is how a typical dealer looks it’s it’s it’s small its fragmented a dealer on an average does like 20 cars a month? That’s the size of dealers. We are talking about and by providing them the supply of cars We are actually helping them grow their business and in turn four cars 24 We are actually for the first time trying to organize a market that has traditionally always been fragmented. So we are actually this is how we are organizing the market and and these dealers Because they are small they are fragmented. They don’t even use an Excel they never use Excel if they are always using pen and paper to manage all their work the only piece of Software the only piece of technology that they use is cars 24 mobile app It’s incredible. If you were to visit one of these dealers, you will never see them Have even a laptop or a computer, but they have this mobile app on their phone, which they’re using for over two hours a day And most of them are pretty much on it every day. So that’s the power of what we have built Dealers are hungry for supply they don’t get supply and we provide them that And and that’s how we build a large UCR business Another thing about about the market is almost more than half of our cars are actually going to smaller towns and cities in India So while we buy cars and top 15 cities in India, we are selling those cars in over 100 cities so there is a lot of intercity interstate transactions that are happening where the cars are moving from the larger cities to smaller cities and That’s the value addition we are doing allowing these cars to move across different parts of India and then Very important piece of the business that sort of developing is financing So these dealers now that they have supply of cars are hungry for growth And for that growth, they need financing. But again, we saw those pictures These are like really small guys. So they don’t get that financing and we are now helping them get that financing So that they can grow their business which is again an incredible value add for a dealer They get supply we ensure that they don’t buy lemons, and we also provide them financing to help them grow their business it’s just phenomenal for them and What has resulted is in last three years? We have started to see these network effects where you know as consumers walk into our branches more dealers are Are hearing us and then they log onto a mobile application and as more dealers get to our app We are able to buy more cars which results in word-of-mouth and more consumers come to our branches and and that circle just continues We are now run waiting 30,000 cars are quartered and we have in last one years seeing a phenomenal growth growing at almost 20% month on month and To my first point that it’s we are not just building a used car business but perhaps India’s largest auto business because once you have the supply You could do so much with that supply. You could actually also sell those cars to end customer you could do financing There are a bunch of interesting data place that you could have so there is just so much you could build you could Really really go ahead and conquer the entire ecosystem which is why we think we are building India’s largest auto company not just used car company and and in that in that journey, we have some of Fantastic VCS and partners that have have have bagged us there are many more but that’s that’s a story We’ve been around for three years We are the only and the largest used-car player in India and on a journey to create India’s largest auto company. Thank you

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