Cars24 superapp: Cars24 unveils superapp for ancillary services to monetise user base

Looking to monetise the consumer base it has acquired through its used car sales, SoftBank-backed firm Cars24has launched a superapp consolidating ancillary services such as vehicle repairs, financing, on-demand chauffeur booking, insurance payments, FASTag distribution and service history records, cofounder and chief marketing officer Gajendra Jangid said.

“We plan to add over 40 such services going ahead…at some point which will also include new car sales,” he said.

Jangid said the company is currently clocking a gross merchandise value (GMV) of $1 billion. In FY23, its operating revenue grew 7.7% on year to Rs 5,535 crore.

“We have far more services than before…while these are not high GMV businesses, they are better margin segments,” he said.

Most of the ancillary services being offered are being built in-house, leveraging the company’s existing infrastructure, he said.

Cars24 has a non-banking financial company (NBFC) that has disbursed more than Rs 3,000 crore in loans for used cars. Jangid said the rate of interest charged by the company is higher than that for new cars, given the difference in risk profiles for used car buyers compared to new car buyers.

“We’re the market leaders in used-car sales…but the market is still largely unorganised. The market is sized around $23 billion and is growing at 15-20% CAGR. At this rate, it is expected to become $100 billion in size over the next ten years,” Jangid said, adding that presently, for every each new car sold, 1.5 used cars are being sold in the market.