Exclusive: CarDekho enters auction model by opening up 8 stores under Gaadi’s brand
Soon after acquihiring CarBiqi, CarDekho has forayed into auction model where it will be buying cars from consumers on behalf of dealers. The company has opened about 8-10 stores across the National Capital Region (NCR) under the brand name Gaadi by CarDekho.
Entrackr has visited four stores in Gurugram, New Friends Colony, Noida, and Indirapuram (see feature image). Car owners can sell their cars instantly by visiting such centers. Gaadi is CarDekho’s sister concern that deals in the used car segment.
As of now, CarDekho has been dealing in classifieds (for users) and lead generation (OEMs and dealers) models for dealers in the used car segment. With the integration of the auction model, now it directly competes with Cars24.
According to our sources, the Sequoia and HillHouse Capital-backed firm will be opening up more stores in Bengaluru by early next month followed by Pune and Mumbai.
About eight months ago, Naspers-owned classified major OLX also opened several stores in NCR with a name ‘Cash My Car’ to compete Cars24 through a similar customer-to-dealer auction model.
With offline stores, CarDekho is eyeing to execute Cars24, Mahindra First Choice and CarNation sort of model in the used car vertical.
Almost after three years of raising Series B round, CarDekho had scooped up $110 million Series C round from existing investors including Ratan Tata, Times Internet, Tybourne Capital, Dentsu, Inc., HDFC Bank, and others.
Last year, it also acquired PowerDrift, an automotive channel on YouTube.
Since CarDekho has entered into auction model, it would be interesting to observe how it competes with the likes of Cars24 that had raked in $50 million from Sequoia Capital which is also a substantial stakeholder in the Jaipur-based firm.
Source: Entrackr
