Couldn’t resist this subject line. Seriously though, What is going on with Auto Classifieds? An unheard of Ukrainian start up called autoportal.com has taken 12.3% market share in the Indian used car market..
To give you an idea why this is such a shocking statistic — CarTrade which has raised $243 Million from investors like Warburg Pincus & Tiger Global has about 11.6% market share (as of March 2017) on its own and another 18.78% if we add up CarWale — a company they bought from Axel Springer in an all cash deal for $90 Million.
Here’s how the Market share played out as of March 2017 vs. The amount raised by each company. It should give you an idea of capital efficiency of one business vs. the other.
But then this is a break-up of the auto classifieds space by App installs and app installs are completely irrelevant to the reality of buying a car. Few Indians are willing to purchase a car using an App — specially a second hand car buyer. Apps are simply a great way to search for cars we could potentially buy and get an idea of where the market is at.
The true beneficiaries of all these online portals are traditional second hand auto dealers like Maruti Assured and Mahindra First Choice who power much of the inventory listed on these portals.
Thanks for your time,
Ashish
- Team KG
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You can reach me on ashish@kalagato.com
