What are the biggest dreams of humans? According to a study, the biggest desire among us is owning a house, and the second is owning a car, whether old or new, it doesn’t matter. Both things require time, research, and money. To save time and effort, Amit and Anurag founded a company called Car Dekho. But how does Car Dekho generate its current revenue? How does it earn money, and how does its business model work?
Introduction – CarDekho
Car Dekho is an Indian automobile website that provides information related to new and used cars, including their specifications, features, and prices. The platform was founded in 2008 and has since grown to become one of India’s leading online car marketplaces. With a user-friendly interface, Car Dekho helps car buyers make informed decisions by offering them detailed information about the cars available in the market.
CarDekho – The Founders
The company was founded by two brothers, Amit Jain and Anurag Jain, who hail from Rajasthan, India. Amit Jain is a graduate of IIT Delhi and holds an MBA from Harvard Business School. Before starting Car Dekho, he worked with companies such as McKinsey and Company, Ford Motor Company, and Trilogy Software. Anurag Jain, on the other hand, has a background in computer science and has worked with companies such as Trilogy Software and Accenture.
Car Dekho Sales and Revenue
Since its inception, Car Dekho has been experiencing steady growth in terms of sales and revenue. The company generates revenue by charging a commission on every car sold through its platform. In addition, it offers various value-added services such as car insurance, financing, and accessories, which also contribute to its revenue stream.
According to a recent report, Car Dekho’s revenue for the financial year 2021-22 was around INR 1598 crore, which is a significant increase from the previous year’s revenue of INR 884 crore. The company’s sales figures have also been on the rise, with over 60,000 cars sold through its platform in the last financial year.
Business Model of Car Dekho
Car Dekho’s business model revolves around providing a comprehensive online platform for buying and selling cars. The platform connects car buyers with dealerships and sellers, facilitating the entire car buying process. The company’s focus is on delivering an exceptional customer experience, which is evident from its user-friendly website and mobile app.
One of the key factors that set Car Dekho apart from its competitors is its extensive network of dealerships and sellers. The platform has tie-ups with over 5,000 dealerships and sellers across India, ensuring that customers have access to a wide range of cars to choose from. In addition, the company offers various value-added services such as car insurance, financing, and accessories, which provide additional revenue streams.
Here is a more detailed explanation of Car Dekho’s business model and revenue sources:
Car Dekho operates as an online marketplace that connects car buyers and sellers. Where sellers list their car to sell without any effort and buyers can find cars online easily without investing their time and research.
The company generates revenue by charging sellers a fee to list their cars for sale on the CarDekho website. This is the primary source of income for cardekho.
Commission on sales:
When users, whether buyers or sellers, successfully complete a transaction on the platform, Car Dekho charges a small fee typically ranging from 1-2% of the sale price.
To further monetize its platform, Car Dekho offers value-added services such as car insurance and financing options to buyers and sellers.
Car Dekho also generates revenue by selling leads to dealerships and financial institutions that are interested in reaching its large user base through cold calling and emails.
The company leverages data analytics to provide data insights to car manufacturers and dealerships on consumer preferences and buying behavior.
Car Dekho has a mobile app that allows users to search for cars, compare prices, and read reviews, further expanding its reach and user engagement.
How CarDekho is using technology to shape its brand.
Technology has been a critical enabler for Car Dekho’s success. The platform leverages technology to streamline the entire car buying process, making it faster and more efficient for customers. For instance, the company’s website and mobile app provide users with a range of tools to compare cars, check prices, and even book test drives. In addition, the platform uses advanced analytics to provide customers with personalized recommendations based on their preferences.
Car Dekho has also been investing in emerging technologies such as artificial intelligence (AI) and machine learning (ML) to improve its customer experience further. For instance, the company uses ML algorithms to analyze user behavior and provide personalized recommendations to customers. The platform also uses chatbots to handle customer queries and provide instant responses.
Car Dekho’s success can be attributed to its innovative business model, customer-centric approach, and effective use of technology. The company’s founders, Amit and Anurag Jain, have been able to create a unique online marketplace that caters to the needs of car buyers and sellers across India. As the Indian automobile market continues to grow, Car Dekho is well-positioned to capitalize on the opportunities and further expand its market share.