CarDekho to invest $20 million in used car business in FY21

NEW DELHI: Jaipur-based Girnar Software which owns auto portal CarDekho has firmed up plans to invest $ 20 million (approx. Rs 150 crore) in its used car business in the ongoing financial year.

With this investment, the company plans to open 50 exclusive franchise stores and 200 Retail Trustmark locations in FY 20-21 and over 1000 Retail Trustmark Locations by 2022. The first of these excluive franchise store opened in Jaipur Monday, to be followed by stores will be in Delhi NCR and Bangalore respectively. These Trustmark stores will ensure similar user experience one gets while visiting a showroom for buying a new car.

Amit Jain, co-founder, CarDekho said, “There is a surge in demand for used cars as this pandemic has reinforced the need for a personal vehicle. In FY20, there were 1.3 used car transactions for every new car transaction. We see this number going well above 1.8 times in the current year as people prefer personal mobility at a lower cost. We are entering into franchise business model for selling Trustmark cars with an aim of providing economical personal mobility solutions to people in the most transparent and hassle free manner.”

All cars sold from exclusive stores will be Trustmark cars and comes with a 6 month/7500 km engine and transmission warranty as well as a 7-day shield. This shield for 7 days post purchase of the car is an industry first where if the car develops any issues related to mechanical or electrical functioning which were not part of the evaluation report, the store will get the issues rectified totally free of cost for the customer. These cars undergo a thorough evaluation process with checks on ownership, challan history, odometer tampering, accidental history, age of the car along with general condition of the car.

The Trustmark stores will also provide on the spot Loans and insurance service along with RC transfer facility under one roof. Moreover, the evaluation report of every Trustmark cars is transparently available on the website and any customer can see it and discuss before buying.

“Overall, we expect used car business to grow 3-4X by the end of this fiscal over Jan-Feb 2020”, said Umesh Hora, CEO (used car business), CarDekho.

CarDekho already has more than 50 CarDekho Gaadi stores across the country for buying used cars from customer.

CarDekho to invest $20 million in used car business in FY21 CarDekho to invest $20 million in used car business in FY21 Reviewed by TechCO on 8/17/2020 Rating: 5

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