PR Newswire | 21 Sep, 2015
MUMBAI: With India Inc. slated to sell more than six million vehicles by 2020, the automobile market is seeing a huge rise in the buying and selling of used cars. In the midst of this melee, one used car marketplace stands out from the rest. JaanCar, the latest entrant in the used car market, is the only marketplace model in the country, that deals purely in the luxury used car segment. With a service that does not charge users any commission or listing fees, JaanCar is the perfect peer-to-peer used car platform to be on.
Mumbai-based JaanCar was founded by two school friends - Kunal Jeswani and Anurag Chowdhary. The portal jaancar.com started its operations in June this year and has already facilitated a gross merchandise value (GMV) of Rs. 1 crore in Mumbai itself. Before starting this venture, Kunal worked as a business analyst for a venture capitalist, while Anurag worked as a software engineer at IGATE. They used their knowledge and experience and applied it to build a transparent C2C used car portal, JaanCar.
"Our research in the used car market showed us the grey area that still exists when it comes to buying/selling a used car," says Kunal. Anurag adds, "We saw the revolution coming. There was a need to evolve to a more transparent and trustworthy portal that simply does not exist today in the market."
The industry need gap
After seeing the information asymmetry that exists in the market today, both founders concluded that the biggest challenge in this space was matching price with quality. This is due to a system that is not yet transparent enough for both the buyers and sellers. Price discovery, which is taken as a reference point for actual car value by existing established portals, is one of the biggest challenges for both buyers and sellers. Many times the suggested prices are quoted just to motivate the seller to list. In reality, the listing price is way off than the actual selling price.
Many used car portals use this tactic as their major revenue flow-in from the user listings, and not actual transaction volumes. A major downside of this tactic is that such inflated listing prices fail to appease the buyers in the online used car market. But JaanCar wants to be more helpful to buyers and sellers. Another disadvantage is that online classified portals that exist today are mainly scouted by brokers/dealers with continuous calls to buyers. JaanCar plans to eradicate this completely and also provide warranty on every car they sell through their platform so that buyers are assured of the quality.
This market is bullish
The current ratio of new car sales to used car sales in India is 1:1.1. This means that for almost every new car bought, somebody else is buying a used car in India. In the West, this ratio has is 1:3 (for every new car bought, three used cars are bought). "India's used car market, therefore, has huge potential to grow and it's only a matter of time before it reaches a ratio of 1:3," points out Kunal.
Though they started operations only three months ago, JaanCar already has an inventory of luxury used cars worth over 40 crores. Along with an overwhelming response from the market, JaanCar has received requests from premium, mid-level and low-end car owners too. However, catering to those segments is in the planning stage right now.
The biggest reason for JaanCar's on-going success is its thorough assurance of quality. Any car that is to be listed on the site is inspected by JaanCar and goes through a 250 checkpoint criteria. This stringent quality check ensures that accurate car images and data are uploaded. By physically inspecting the car, JaanCar not only prevents brokers from listing on the site but also creates trust among buyers by providing warranties that assure them that the used cars are genuine and not bogus. The site also ensures that all parts of the buying process, like car shortlisting, establishing a fair price, inspection, paperwork, loans and insurance, are easily accessible for their users.
While JaanCar currently operates only in Mumbai, an expansion plan is underway to launch the platform in Delhi and Pune by the end of the year. JaanCar is already in talks with several Angel Investors and venture capitalists to help aid its amazing growth story and expansion.
Founded in July 2015, JaanCar is a premium peer-to-peer used car platform that aims to become the go-to place for used cars across India. While it currently caters to buyers and sellers in Mumbai, it plans to launch in Delhi and Pune by the end of the year. JaanCar aims to give its users a great buying and selling experience by:
enabling transactions without any listing fees or commission,
cutting through brokers and other intermediaries,
offering the best price for used vehicles,
thoroughly inspecting vehicles so that the buyer gets his money's worth, and
providing value-added services such as warranties, loans, assistance with paperwork and post sales support.
To know more, kindly email at email@example.com or visit www.jaancar.com