CarzSo.com, virtual pre-owned cars showroom, has recently raised Rs 5 crores ($700k) from a group of marquee investors led by Mytash (an Indian investment arm of US early-stage investment fund).
The virtual pre-owned car industry in India is expected to witness a hot streak in the next few coming years as the market is witnessing a digital push mainly driven by customers’ preference to limit physical visits for car buying in the wake of COVID; the accelerating trend of digitization will lead to an increasing share of sales through digital platforms.
The growth is expected to be driven by the rural areas, tier 2 and tier 3 cities. According to the stats - non-metro cities contributed 55 percent of total used car sales in India in the FY2021 which is further expected to grow to 70 percent by FY2025.
Hence, the startup plans to allocate the funds to launch multiple “Virtual Reality” based stores to further improve its presence in non-metro cities and invest on improving its showroom in “Metaverse” space.
Vaibhav Sharma “Founder & CEO” of CarzSo.com said, “This quarter we plan on filing multiple patents for the use of “Virtual Reality” technology in the auto space, and with growing inventory / revenue we plan on launching 3 to 5 virtual stores to improve our presence in the Rural, Tier 2 & Tier 3 market,” he added.
Suneja, Director, Mytash said, “The biggest opportunity in auto space is how best you can digitize the market while tapping non-metro cities (which has the bigger share and is also projected to overgrow metro cities) and ensuring that customer experience remains the main priority.”
Suneja will join the Advisory board at CarzSo.