CarDekho Shutting Down Used Car Retail Business
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- Опубликовано: 17 май 2023
- CarDekho Shutting Down Offline Used Car Business 😮
Main reason behind this is, that it's burning a lot of money and there is no scope of profitability, according to CEO Amit Jain.
He said that brokers make money in this business as their expenses are very low and their holding period is few days.
The company will act as a mediator going ahead between the buyer and the seller.
#cardekho #amitjain #sharktankindia #business #money #startup #entrepreneurship #company #enterprise #indianstartups #india #funding #unicorn #investing #founder #wealth #motivation #businessideas #success
After spending 250 million dollar he learned not to do offline great enterpreneur
Desi Entrepreneur ❤😅
Bhai tumhari company ka naam kya hai
Iit jao investor ka udhao yehi hota hain bro
@@bebetter3897 Discourage people 😂
- without knowing anything
Why amit jain hadnt explained this before taking investment?
In which world they buy at 5 lakh and sell for 5.5 😂😂😂
When I wanted to sell my 2006 pulsar in very good condition rarely used with Odometer 38k around I was quoted 3k and when I tried to buy same condition bike after a week I was quoted not less than 35k 😂😂
Same thing happens with cars.
Shutting down is just a way to show losses and eating away investers money.
Yes also tax subsidy
Have you used the app ? It is same like OLX
I buy working second hand laptop at cheap prices and sell then double
2006-2021 15 years you will get scrap value of 3k to 4k max, no matter how good condition it is in , had you sold it in 2016 you would have got 25k probably if in good condition according to buyer
I went to sell my i10 to their outlet because I thought selling to them would be easy
They will check your car through some 40 checks and the would also use a device to measure the paint thickness of every panel to find out repainted panel.
Then they will offer you absolutely low prices and sell it on their platform via auction at very high prices.
They offered me a mere 90k for my i10 because my side mirrors were not original and rear bumper was repainted, and 2 days later I sold it to someone else for 2.2 L.
The truth is that no one is willing to sell their cars to them.
Just that's it!
@@georgecarlinn6288dude, but these guys will definitely not put a tag where they will just earn 50k. He would have gone out of business in just a year according to this videos math.
They tried to sell used cars in price of new car 😅😅😅
Individual car resellers were doing good, cars were priced nominal.
Startups of iit/iim grads said they are going to disrupt the market and then finally eat investor money while of erring terrible user experience
😆😆😆
Facts
it's like evry big startup these days
Over hyped iit/iim
No. Not really. They jacked up the prices of used car, drove up used car prices, now they can't sustain the model! My 2011 model car which was not going for more 2.5 lacs in 2019 is fetching 3.2 lacs in 2023, that's just how insane the price rise has been. No one is talking about this!
Bro its really really bad out there.
Absolutely true...dont know why anyone is not talking about steep car prices hike
@@lalithrockz I know man! I saw a used car seller showing his collection. Hyundai Verna 2021 model, 7000 kms, asking price is 14.5 lakhs! Wtf 🙄 The new Verna will cost just a lakh more.
Covid 19 drove the prices up for Used cars as new cars were not being produced for chip shortages.
Now it is beginning to even out
Demand and supply is the main factor
This is called a heist of $250 Million
😂😂😂.
I came here to say that too
💯 Agreed 👍
@@humbleindian6303Why r u spamming
I see many business in India not earning profit. Cause the people really don't have money to spend. It's hard to earn profit in India.
No, it's not. It's hard to sustain business when your greed go out of control. Those most of startup are targeted to make it's founders make rich , business survive or not.
i wish spinny also shutdown, they increased second hand car prices like carzy
When you raise money without calculating this basic expenses 😂😂
They want profit margin very high every second hand car seller in India like cardekho and all buys a car and want to sell at 1.5 - 2 times. But second hand buyers in India prefer to directly contact seller by jugad in this both buyers and sellers are happy.
These are just scam not startup
😂😂 sahi pakde guru 😅
You are smarter than the investors. 😅
Startup scam 😂😂😂
They know it
It’s called the Exit scam where the investors exit either via IPO or some other route and leave someone else holding the empty pot. Initially they’ll maximum percentage of the money for hype and brand building so that IPO gets oversubscribed maximum no of times
@@cooljunky Investor wants to take an exit once the valuation goes up, series A investor wants to fool the series B investor, the series B guy wants to fool the series C investor and this goes on until the company goes public and the retail investor gets fucked in the ass.
According to this thing, every single business is a loss business
How so?
They aren't
Yes as of today all the new unicorns are loss making. They only bother about top line and bottom line is always in losses.
You take Swiggy, Zomato, etc from India. All are loss making companies who get billions of dollars funding
@@skschandra isn't it bad for economy?
@@kashutosh9132well sometimes you have to first create the market before making a profit off that said market.
Why they don't calculate this before starting the business....😂😂😂
😂😂😂😂
😅
Investors ke Paisa sa millionaire Jo bann na hai inko.😂😂😂
@@karna8658 woh invester be kithna bewakuf hai
Laxmi aati h toh aane do... Puchne ka nahi 😂 Kyunki inme se aade expenses direct Amit ki jeb me honge. 😅😅 He made millions. Why would he care. Why would anyone. 😂
And ye log shark tank mein mein profit and loss pe gyan dete hai
They are still tax frauding govt.. he is still one of the best businessman but shouldn't be a role model as an honest man... investing 260 million and showing that they are at loss is just a way to avoid tax and eat up investor's money
Exactly 😅
And tum log bas jalte ho
@@A-SS56 Haan bro
Good thing.... Their biggest competitor is olx and social media... There is direct selling in these platforms
They increased the price, made the market and the buyer price sensitive, now that nobody is buying they are shutting down😂
Phir 6 lakh mai bechan tha na 😅
Tum lete 6 lakh mein agar 3 lakh milake nai car aa jati ???
@@Yellomellowil 3 lakh 50% hai budget ka
Logic bhi use kiya karo thoda 🙄
@@surge5240 badde jisko Lena hai na wo leleta hai baat budget ki nahi hai
@@Yellomellowil beta tu paisa kamana sikh le phir budget kya hota hai pata chal jayenga 🤦
@@surge5240 😅😅😂
Investors will soon realise that Indian entrepreneurs are interested in building their bank balance. Not interested in solving a problem. Death of entrepreneurship in India. 😅 Not surprised at all. 😂😂
If u genuinely have a business Nd concept clicked even you are profitable its very difficult to raise funds in india for some startup but now a days people are funding to loss making startup crazily
@@DeriveUniv these fraud entrepreneurs should be imprisoned for life. As they are spoiling the image of Indian startups and by the time next generation is ready to be entrepreneurs, no investor would be trust them. So they are kindda pushing Indian economy and entrepreneur ecosystem into dark dirty corners, from where it will be hard to come back.
They need to hire new management
2000 crore banane ke baad shutdown karna it's normal baat he
I agree😂😂
😂😂😂 jump to next idea for another startup
2000 crore is revenue not profit
Bussinessmen arent fools bro, they are smart thats y they are bussinessmen, their profit margin will be more than 20 -30 percent easily, which will cover the expenses too,5 lakh is just for public , real price only they know..
bro realised this after raising 250m...demn business
I think this is more of a strategic decision. Other used car marketplaces, like Olx and Cars24, have also shut down their offline businesses. The industry is changing and shifting towards a home inspection-based model.
Because it has become hard to sustain. They started offering insane prices for used car to the sellers. Then the buyers are getting a raw deal of paying even higher prices. The margin has drastically reduced and they are unable to sustain the model. They destroyed an entire industry with VC money. No one is talking about this!
@@fredyph30just nailed it.
@@fredyph30true
Almost every startup is bleeding money of some kind now. I can't understand what kind of planning they do, on fancy boardrooms, with high paying teams, and large investor money.
I think Raju Bhai is better at planning then them.
I don't know where they spent their 'refurbishing' budget. I know 3 people who bought cars through CarDekho and all of them were shown horribly maintained cars with rusted body panels that had been patches up using putty and paint to try and hide it. Also the interior was in bad condition as well along with some mechanical issues.
To make things worse, they were being asked for exorbitant prices for cars in such bad conditions.
Two of them didn't buy through the platform at the end while the third guy - who had connections and is 'known' in the area - brought down his car's price by over 1.2 lakhs before buying it off.
Thats the scam brother. The expenses go in Amit Jain's pocket. Investor ko bhi toh batana hoga na ki paise Kahan Gaye. 😂 Aage bhi toh paise lene h. 😅
Reality: Ubersell broke car dekho's whole business model😂
Pehle business start kar leta hu calculation baad me kar lunga
From some sources i came to know this a few weeks back. They are cleaning their existing stock from the central warehouse in Delhi. So technically you van still buy used cars from them now but they have discontinued the buying segment.
And they still get funds 😅
cause he spent all his money on sharktank
They should not buy a car which value is more than the actual value .. they used to tell old car will get better price 😂😔
That's why leave local businesses to locals
I like how venture capitalist money is used to “test” ideas before practically trying it
That's not how it works!! Do you really think they would sell it for 50k profit? They are greedy as hell, true you have to make some profit but not rip off people
But actually they're not ripping off people, they're just wasting everybody's money honestly. Olx just provides the platform and people but old stuff. They just spend extra money unnecessarily on these cars and now the buyer has to pay extra, seller gets nothing and investor loss money like hell.😂
@@pulkitkaushik exactly my point, but it's not wasting, they are making you pay extra by offering you some "mandatory" service that you never asked for, so that your new car will be in the "best" condition. While actually they aren't doing much real work or service. It's the old buy low,sell high principle. They buy a cheap car, spend some money to make it look brand new and sell at a high price.
Their margin is more than 50k btw!
Individual daily money rotating business is the best of all businesses
Not legal
This is the difference between Startups and well built businesses. For example, Classic and Standard automotives are 40yr old used car businesses in Bangalore that have thrived.
bruh literally said loss of 30000 per transaction, like the money to keep itself running came from clouds .
It's always the investors money bruh. Modern start-ups are nothing but direct benefit scheme from Modi govt where start ups just transfer investor money to their customers.
Eg discounts from Amazon to Swiggy and Zomato or Paytm.
@@pulkitkaushik well then it's investors who are idiots for buying into it in the first place and not doing there due diligence
LEGENDS ALWAYS SAID ONCE, BUY ASSETS THAT APPRECIATE OVER TIME, NOT LIABILITIES THAT DEPRECIATE OVER TIME.
Used car sellers are bumping up the prices to a ridiculous point. Tata Tiago (3.5L) car is being sold for Rs.3L after 80,000 KMS and six years of age.
I have said this before and saying it again....any business whose foundation is based on cash burn is not going to make any profit ever. Purane lala ko agar main bolu ki aap 100 crore kharch Karo marketing and expansion main aap ko 1000 crore ka business dunga wo bolega tu mujhe 50 crore de main Bina kharcha kiye 1000 crore ka bana dunga...
America :-
We have startups like
Google Microsoft Adobe nvidia Amazon
India we have
Ola car dekho boat sugar aur papa ka business emcure😢😮😅
😂😂😂😂 🤣🤣🤣 And we are about to be World Leaders! 😅😊
@@cooljunkythat is the biggest load of crock. I fell for it! 😂 I came back from US because "muh India Vishwaguru"
BJP and their industrialist buddies have made good popat of everyone. They sold dreams about a booming economy & are still doing it! 😂😂
@@senor2930 were you in functional role( like an engineer) that you couldn't see the bullshit
We don't have innovation. Because we don't spend much on quality education. They call ' iski topi uske sar' business in India.
Reliance, tata group, L&T, Infosys ❤
when a front bencher starts a business
🤣🤣👌
But he is a backbencher
These startups are done by backbenchers bcos they are all a scam
Ambani kai ghar mai parking kartha hai kya ke 7500 ka karcha ara hai ?
Just because you get large funding does not mean you are a successful business. You need to generate profit not just keep raising money. Otherwise businesses will be eventually doomed.
I never understood how Cardekho is a business at the first place 😂😂
Market ne Shark ka hi shikar kar diya😂😂😂
customers and name has been acquired 🐸
And these r the judges of shark tank
Y to shut down sell premium cars !
Premium cars refurbishment is even more expensive, you can't buy and refurbish luxury cars if you don't have ground level contacts in this premium car industry. the more deeper you have contacts for refurbishment the more you will earn
All startups in India are disrupting brick and mortar businesses and by the time they are done small businesses are vanishing in metro cities and people will be left with little to no choice but to biy products only from few giants and the rest small traders and retailers will be left with no choice but to do jobs in some company
Fir kaheka shark 😂
Profitable business guys buy the 5 lakh worth car at 4.25 by showing inspection report telling everything is fuckedup. They will not spend any money other than washing it. Sell the car for 5.5
Best model is an online bid where customers meet customers aand they only take the commission
Actually reselling cars new or old is not great business because inventory cost is very high and margins are very low..until you have car service in the back which will bring steady cash flow with good margins
OLA has shut it down too.. the problem is competition in procurement. High price on procurement lead to loss.. otherwise, this business model is very traditional. Many local dealers are able to do this with good profits.
The whole startup funding thing is a big scam. They just raise money from vc. Take huge salaries. And wait till the company goes bankrupt. So they can start a new venture.
When shark ain't sharking😂😂
Yeh shark 🦈 toh chota machli 🐠 nikla 😂😂😂
These idiots have spoiled the business, if they purchase a car around 2 lacs, will sell it for 3 to 3.5 lacs.
Why would they sell it for 5.5 lacs? It dosen't make sense. Something fishy like loss in reports to eat away funds.
Investors ka paisa kha gye or kuch nhi bc..typical indian mentality.
they got places in malls that is where they made mistake you dont get that much profit no matter howmuch you pump prices. thoes in the buisness are on illigal land so no investment in land just park the car.
He should've shown this calculation while picking that $250 million investment.
There prices are to high for any used car
Even they tried to expand without profit, first they have to check whether, staff are paid well, underpaying them and investing in expansion, indirectly affect business
These geniuses are asking 99 just to disclose details of a seller
Inko Shark tank nahi murkh tank me bithao 😅
Basically they were running an unsustainable business in investors money and ran out of it.
If you have a big company then it's expenses are big!!! Some local sellers are selling used bikes and cars very successfully in Tamilnadu, Kerala, Karnataka etc., Because less manpower, less other costs and you do make some good profit!!!😢😮😢😮😢😮😢😮.
Agar samaj aa gaya tha dandha nahi hai to last round kyanu raise kiya?
Dhandha nahi tha..lekin personal profit toh tha na bro. He showed all these refurbishment, parking, etc. Went straight in his pocket. 😅 It's a good deal for him.
and that is why this is the leading business of Delhi, haryana, punjab and jandk
How cam online used car business works then
that is the main issue of each buisness
3 months ka parking charge 7500 per car. 😂😂😂
Goes straight to Amits account. 😂
Bhai ye to kuch vesi baat huyi" nach na jane angan tedha😂"
What's the avg margin of second hand cars?
The interest payment on the loan. That's the main problem for profitability. Besides if cardekho upscaled their offline business the profits would have been substantial, initial costs seem like a burden when profit margins are slim, but capturing the market is a lot more important. Not to mention the brand image it would create with showrooms. Like Maruti has done with Nexa showrooms. The investors should sue cardekho for not fulfilling the promises made during fund raising.
Very Informative content, Thanks for sharing
How cars price rise😂😂
Not to be cynical, but in a way it's good. I hate big corporations. I like small business. People will benefit
Another day, Another sad story of a Shark
Then how come sygan yelcin who is an entrepreneur have company called buy and sell any car business in dubai is doing well
They along with other platforms makes a min of 1 to 1.5 l higher per car than the general dealers in the market.
So before raising the round they did not made this loss making calculation
They should have invested it in aggregating small time used car shops.
Offline bandh kr rhe hai and online chuna lagana chalu
I think this was just a scam to raise money. people at the top got rich and usual the bottoms one got out with nothing.
Spinny laughing 😂
It's not so simple like how he told. He could bought car for 4kk instead of 5kk but still would prefer to say 5kk
In short...the business was shut down due to huge amounts of cash burn .
Why cant the start a side businness for that 3 months like running cabs or car renting to tourists etc they can reduce some loss right
The user car market is rocking in uae , the reasons could be different in india
That's where Economies of Scale come into play....you can't decide the whole loss on a single unit
Bhaisab 2010 2012 ki cars 2 lakh se 2.5 lakh me bech rhe hai jiski life Delhi ncr me bs 1 ya 2 sal h bchi h hai. Ab 2 sal ke lye 2 lakh ka car kon kharidega
Itna samaj mein aaya itni funding lene k baad.
Wah re founders..and investors..
Next venture CarKharido. 300 million capital.
Real reason they were selling the used cars highly overpriced. When a local dealer or someone of your known can give you same car at lower cost.
Good RUclips channel🎉
This is not the fact they were unable to sell the used car on their prices as a lot of offline agents were giving tough competition in comparison to prices