New car buying platform Mynewcar secures $250K in seed funding
Online platform for buying new car Mynewcar has secured $250,000 in seed funding led by a consortium of angels from India and Europe, including Dreamz Ventures GmbH from Switzerland. The company has been piloting online service through which people can buy new cars, escaping the cumbersome process of visiting multiple dealers and haggling with them to get the best offer.
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Mynewcar will expand to cities such as Pune, Delhi, and Bangalore. It will also leverage funds to build the company’s technology platform, including mobile application and process automation.
The Mumbai-based company claims to have sold more than 100 cars till August 2015 and processed GMV of $1 million. Madhukar Manpuria, CEO and Founder of Mynewcar, said,
Car buying is an emotional journey that should be accompanied by joy and happiness. Our mission is to simplify the car buying process to a joyful experience by providing convenience & value to our customers.
Mynew car has 100 dealers along with market leaders offering value added services like car insurance, finance, and lease. E-commerce behemoth Snapdeal had recently launched Snapdeal Motors to enable hassle free online booking and purchase of two and four wheels vehicle.
Unlike India, globally there are there are plenty of multi-billion dollar startups in USA, China, and Australia etc. that work as auto classified web portals. According to a KPMG report, BRIC markets will dominate the global car market in 2020.
Customers face a slew of challenges while looking for options, booking preferred model, and colour etc. Online car buying platform can solve aforementioned hassles for customers effectively. With this seed capital, Mynewcar will be able to expand to new cities and tackle competition. The company competes with Snapdeal Motors and a few others.
According to consultancy and market research firm Frost & Sullivan, last year close to 2.5 million new cars were sold in India while used cars amassed three million sales during the same period.
Besides advance bookings, consumers probably look for the entire process (loan, insurance, registration etc.) to be disposed at a single platform. Mynewcar and Snapdeal Motors claim to solve these processes. Going forward it would be interesting to see how Mynewcar and Snapdeals Motor evolve.