Multi-brand car marketplace MYNEWCAR has raised $1 million (Rs 7.1 crore at current exchange rates) in a bridge funding round from high net worth individuals, a top company executive told TechCircle.
The startup will use the fresh capital to expand its test-drive platform Trivz to other cities, apart from marking a presence in other metros, Madhukar Manpuria, founder and chief executive of the venture said.
The marketplace sells cars of various brands and offers users insurance and financing options while buying a vehicle. The startup works with car dealerships and original equipment manufacturers for brand discoverability and charges a commission for any sale.
Through an online platform called Trivz, which the company recently launched in partnership with Mahindra, users can research, compare and book a car for a test drive via the platform.
Run by Dreamz Mynewcar India Pvt. Ltd, the Mumbai-based company was founded in 2014 by Manpuria.
“Most companies in the used car space serve as classifieds. Almost 70-80% of users research a vehicle they intend to buy online. We also connect customers to users of the car model they are interested in for feedback on performance and mileage,” Manpuria, who is an alumni of Kellogg School of Management, said.
MYNEWCAR currently has close to 50 employees and is present in five cities including Mumbai, Pune, Hyderabad, Delhi-NCR and Bengaluru.
Deals in the space
The vehicles marketplace sector in India has a number of well-funded companies.
Last week, a media report stated that Girnar Software Pvt. Ltd, which owns auto portal CarDekho, was in talks to secure $100 million in a round led by venture capital firm Sequoia Capital.
In October, online marketplace for new and used cars, Droom closed its Series E funding round at $30 million (Rs 220 crore) led by the family office of Japanese investor Joe Hirao.
Another player in the space is auto classifieds platform CarTrade, which is backed by Temasek Holdings, Warburg Pincus and Tiger Global, reduced its spending for the financial year 2016-17. It also narrowed its losses in 2016-17 to Rs 13 crore from Rs 134 crore in 2015-16.
CarWale, which CarTrade bought in 2015, emerged as major driver of growth for its overall business in 2016-17. The CarWale platform sells new cars.