Cars24 Adopts A Franchise Based Business Model For Tier 2, 3 And 4 Cities

CARS24, a tech-enabled used car company, has announced the adoption of franchise business model to further strengthen its presence in tier 2 cities, with the inauguration of its first franchisee branch in Surat, the second largest automobile market in India. Further, with an aim to deliver personalized customer experience and successful on-ground execution, the company is also planning to introduce a training and mentorship program for its franchise partners. The newly announced business model will help CARS24 to expands its presence to new territories to Tier 3 and Tier 4 cities. The company will leverage the knowledge of native experts to solve the problems of these markets.

To ensure that all the franchise led branches to replicate the values and processes of the company, CARS24 will also be infusing an investment of 10-15 lacs per franchise partner depending on the requirement of the location. The brand is not only following a meticulously detailed process to identify the right partners for the company but testing them on three key parameters - Entrepreneurial mindset, Capital and Integrity. On average, the company is shortlisting 1 partner out of 200+ applications.

The company has its presence in 35 cities with over 150 branches plans to strengthen its reach by launching 100 more outlets by the end of this year and intends to scale up its presence in 300+ tier 2,3 and 4 markets by 2021. Cars24 has been successfully closing a transaction of 12,000 cars per month and has witnessed a 3X growth in the business.

Commenting on the launch, Mr. Mehul Agrawal, Co-founder, and COO, CARS24 said, “The pre-owned car industry in India has seen rapid growth in past few years across peripheries and demands a more simplified model which can aid the complexities of consumer business. To achieve this, over the last 4 years, we have codified all the processes and created an internal playbook on how to buy quality cars at the best price. As a next step, our key objective is to address the challenges that are being faced by the sellers and buyers of non-metro cities. We are filling the vast gap of a dependable partner in the used car segment and are associating the entrepreneurial spirit and local talent of non-metro cities with our platform for seamless execution. The launch is in line with our business expansion plan and we intend to make more such announcements in the near future.”