Download as PDF, PPTX
Uploaded byNOAH Advisors
CARS24 - NOAH19 Berlin
Cars24 aims to become India's largest auto-tech platform, leveraging a significant opportunity within the $100 billion used car market, with a projected growth to $70 billion by 2025. The platform facilitates seamless transactions for car sellers via a proprietary auction system and comprehensive inspection services, while providing financing options through its in-house dealer program 'Unnati'. With a robust digital presence and significant dealer engagement, Cars24 is positioned to generate over $1 billion EBITDA by 2025.
More Related Content
CARS24 - NOAH19 Berlin
- 1.
- 2. @NOAHConference @noah_conference @noah-conference @NOAHConference FOLLOW USONSOCIAL
- 3. CARS24 – TheBlitzscalers 0 5000 10000 15000 20000 25000 30000 35000 40000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 400%+ CAGR 150,000+ cars/year $500mn+ GMV Run-rate 3x growth in FY19 Cars per quarter since inception
- 4. Indian Used CarMarket presents a $100bn TAM today 4.5 MM+ used cars sold in 2018 India used car market ~100B USD Massive 3:1 in Mature market Used cars: New cars 1.3:1 Early 4.6% in U.S. market YoY Growth 15%+ Fast-growing #Monthly transactions ~ 10 Unorganized & Organized Dealers 40K+ Fragmented Source: Indian Blue Book, India Pre-owned Car Market Report, 3rd Edition 2019, Economic Times and industry estimates.
- 5. Used-to-new car sale ratioMarket Leader Respective Market Cap Market size of used car sale 2018A $140B 2018A $300B 2025E $70B ~$10B ~$3.5B Car ownership per 1000 peoplePopulation 1.3B 1.4B 500M 520 170 22 1.3 1 0.5 1 3 1 Transaction space alone has massive room for growth to become ~$70B by 2025 Source：Capital IQ, ACEA, CADA. Statista, TH Capital’s Research
- 6. Unorganized used cardealers in India: small & fragmented mom & pop shops 40,000+ small and fragmented dealers • Control 70%+ market share • No organized player of size 5-15 cars a month • Low volume, small shops 20-30% margin play • Between seller and final buyer
- 7. Supply side isbroken and riddled with challenges C2B WHAT SELLER WANTS • Fair Price • Trust • Convenience • Title Transfer WHAT DEALER WANTS • Stable and Large Supply • No Lemons • Title Check • Financing
- 8. Sell your carin one visit – seamless proposition for car sellers • Fair and honest inspection • Proprietary inspection app • Live auction with 1000s of dealers • Best price via competition • Instant Payment • Full documentation managed by CARS24 Scientific Inspection Book Appointment at an inspection point • 150+ inspection points in 35+ cities • <15 min away from a consumer $$$ $$ $$ 24mins 2 mins Live Online Auction 24mins Transaction Closure 12mins ~1 hour $$$ Received
- 9. 100% Digital salesvia live online auctions – zero friction sourcing for a dealer Views auctions on the app Participate in auctions Doorstep car delivery • Access the largest supply of cars digitally • Guaranteed & detailed inspection report • Short 24 min real time and online auctions to discover the price • Dynamic price calibration with the market • Fully online transaction process • Dealer gets door step delivery with full documentation Our process is frictionless and involves least effort in sourcing for dealers
- 10. Tech based solutionsand intensive automation scaling the business end to end Inspection app • Conducting inspections in the shortest time - Impacts customer experience – wait time, and employee productivity • Minimizing errors in inspection - Intelligence to detect the car features, triangulating key issues etc Backend Systems • ‘Lemon’ check integrations - Instant background check, service history check, title documents check • Operations/Fulfilment systems - Parking yard management, Logistics tracking (including inter-city), Documentation management, inventory management, payment management • Auction Management systems - Dealer app, lead management system Data Intelligence • Pricing engine optimization – Kelley Blue Book of India • Recommendation engine to match cars to dealers • Lending risk modelling
- 11. CARS24 – TheBlitzscalers 0 5000 10000 15000 20000 25000 30000 35000 40000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 400%+ CAGR 150,000+ cars/year $500mn+ GMV Run-rate 3x growth in FY19 Cars per quarter since inception
- 12. CARS24 has thelargest retail as well as sales network for used cars in India ~225+ Dealer Cities ~3500+ Dealers ~150+ Branches ~35+ Cities ~50% sales comes from intercity transactions
- 13. Inspection points aresimple, minimalistic and cost efficient Investment • <$5000 Location • Non high street • Ex. Gas stations Size • ~1000 sq. ft Breakeven time • First month of operations
- 14. Dealers are highlyengaged & hooked on to our auction platform 1951 3343 4443 Daily Weekly Monthly 12% 23% 34% 30% >120 Mins 60-120 Mins 30-60 Mins 1-30 Mins Avg. time spent per dayActive users on the app 15% 35% 30% 13% 7% 1000+ Bids 501-1000 Bids 201-500 Bids 51-200 Bids <=50 Bids # bids placed per month Dealers collectively spend ~100,000+ hours on app every month
- 15. CARS24 ‘UNNATI’ ` Instant 60 Days W orking Capital Eligible on ~100% Cars Data driven creditm odeling ~50% dealer base penetrated already 5,5 7,1 Preenlisting Post enlisting 30% 50% Finance Penetration Jan-19 May-19 ~30% #Cars per month by Financed Dealers ~20% ZERO NPAs out of 30,000+ cars financed till date; Profitable at EBITDA level CARS24 also runs an in-house dealer financing program called ‘UNNATI’ UNNATI has been instrumental to drive dealer growth and dealer loyalty
- 16. CARS24 is theonly player with transaction led approach in Indian market Classified Information Transaction Oriented C2B B2C ~$13B C2C ~$10B ~$3.5B Source：Yahoo Finance
- 17. 32% 21% 4% 4% 4% 2% Top-of-MindBrand Awareness What's the first name that comes to your mind when you think of selling your car? CARS24 has already built highest awareness in the industry Source: Consumer Brand Research study conducted by 64inspired consulting – Feb’19
- 18. Data Service User Comprehensive Auto TradingPlatform Our vision is to create India’s largest auto-tech platform Potential to generate $1B+ EBITDA by 2025
- 19. A Backed by thebest partners Founders of Fiat Chrysler & FerrariAmerican venture capital firm APOLETTO DST- Yuri Milner’s Founders Fund
- 20.
- 21. Selected Completed NOAHTransactions Focus on Leading European Internet companies Covering over 400 companies across 25 online verticals, a broad range of over 500 investors as well as 100+ online-focused corporates Deep understanding of industry dynamics Ability to add value beyond banking advice Facilitates overall process and minimizes management distraction NOAH Advisors is globally well connected and has direct access to virtually all key players in the industry Knowledge of and strong relationships with potential buyers’ key decision makers Proactively finds and unlocks attractive investment opportunities for leading investors Annual NOAH Conference in its 10th year Over 40 years of combined relevant M&A experience Routine execution of M&A and financing transactions with sizes of several billion euros 30 successfully completed NOAH Advisors transactions underline successful transfer of M&A competencies to the Internet sector Entrepreneurial mind-set, focused on growing the business and establishing a reputation for excellence Ability to deliver top results in short time frames Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results Creative deal solutions Unique Industry Know-How Unmatched Network and Relationships Strong Investment Banking Competence Full Commitment - We Are Entrepreneurs! EUROPE’S LEADING INTERNET CORPORATE FINANCE BOUTIQUE® The NOAH Advisors Core Banking Team Marco Rodzynek Managing Director & Founder Jan Brandes Managing Director Nikhil Parmar Director Olek Skwarczek Associate Lukas Schlund Analyst December 2014 October 2014 Sale of 100% of for $800m to Exclusive Financial Advisor to Fotolia and the Selling Shareholders Sale of 100% of for €80m to Exclusive Financial Advisor to Trovit and its Shareholders October 2016 Investment in Exclusive Financial Advisor to KäuferPortal and its Shareholders by 84% Ownership December 2016 August 2017 Financial Advisor to Silver Lake Financial Advisor to EMK Capital Investment in Acquisition of a Majority Stake in by by at a valuation of $200m November 2019 July 2019 September 2018 Financial Advisor to MagicLab Financial Advisor to AU10TIX and its shareholders Financial Advisor to 10bis and its shareholders Acquisition of a 79% stake in $60m Investment in Sale of 100% in by at a valuation of ~$3 billion at a valuation of $260m by for €135m to 10Bis