In the second hand car market top gear, three startups of this field became unicorns, how will the business be?

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Unicorn Club: There is a large section in India who prefers to buy second hand cars. There are also many new customers who first buy second hand cars. Therefore, the craze of buying second hand cars has increased rapidly in the country. Due to this growing trend, the business of companies working in this field has also increased rapidly. At the same time, some startups that have landed in this business have registered a strong boom. The three start-ups of this business became unicorns in the year 2021. Unicorns are those startups whose valuation has crossed one billion dollars.

Investors are investing heavily in these startups doing second hand business. These new companies have found new ways of doing business and now customers are increasingly connected to them. Among them, the name of Zoom, Car Dekho and Spinny are prominent. The performance of these three startups is very good in their field.

Speed ​​​​in raising funds too fast
At the beginning of this month, there has been an investment of more than $280 million in Spinny. With this, Spinny’s valuation has doubled to $1.8 billion in 6 months. If we talk about cars24, then its valuation has increased by 60 percent in just 3 months and it has reached $ 3.3 billion. CarDekho has raised $250 million in funding in October this year, with $200 million in series equity and $50 million as debt ahead of the IPL.

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growth rate too fast
Second-hand car selling platform Droom has raised $ 200 million in a funding round before the IPO. According to a recent study conducted by OLX Auto-Crisil, the second hand car market in the country is expected to grow tremendously in 4 years. It can increase to 70 lakh units. In the financial year 2021, this figure has been at 40 lakh units. According to the estimates made in this regard, by the end of FY 2022, the segment of second hand car market can reach 44 lakh units.

Focus on expanding business abroad
Due to the increasing craze of unicorns in the country, startups are now hiring more and more people and trying to capture the market by expanding their tech infrastructure. Spinny’s founder and CEO Neeraj Singh said in a conversation with the media that at present we are working in 13 cities. We are planning to spread our operations to 25 cities in the next two quarters. We have recruited 200 people into the product with 40 successful people in our tech department. We are now rapidly investing in growing the business.

Vikram Chopra, founder and CEO of cars24, said that we are now looking to expand operations to Australia, Thailand and Middle East countries. With the funding received, we are now focusing on expanding our business abroad.

Tags: Auto, Auto News, Car, Car Bike News, Car loan

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