Mumbai-based, Truebil, which is an online market for buying and selling second-hand cars, has raised Rs 35 crore Series-A funding from venture capital investors Kalaari Capital, Inventus Capital and San Francisco-based Tekton Ventures. Existing investor, Kae Capital has also participated in the round.
Founded by Suraj Kalwani, Ravi Chirania, Shubh Bansal, Rakesh Raman, Ritesh Pandey, Shanu Vivek and Himanshu Singhal, Truebil started operations in March 2015, soon after which it closed a Rs 3.2-crore round led by Kae Capital.
Recalling the conception of this business idea, Kalwani, who is the CEO of the company said, “We were working in a start-up and living in a 3BHK flat in Mumbai. Three of us wished to buy a car for us and started our hunt on all used car classified platforms. The amount of time spent in shortlisting, physical visits to sellers and dealers, lack of transparent info on classified platforms made us realise that there is a huge problem to be solved in this space. This led us to quit our jobs and build a visionary product to cater to all such problems which include providing last mile services post your purchase”
Key Problems Addressed by TrueBil
First off, the company attempts to narrow the information gap that exists between interested buyer and the seller regarding the car, put up for sale. To address this issue, every car is hand-picked and inspected by the company prior to listing. Accidental cars are removed.
Secondly, to facilitate a smooth buying experience to the users and to economize on their time, the company assigns a rating to each car. This way, it helps users with easy shortlisting. Similarly, it also assists buyers close a deal at the best price- mitigating negotiations to the minimum.
Last but not the least, the company takes on itself to enable end to end last mile services like loan, paper transfer, insurance and service warranty, which otherwise becomes an onerous task.
- 100% certified and inspected listings, as claimed by the company.
- True Score on every listing
- Car Recommendation engine – confused which car to buy? Just fill-up your preferences and the platform will automatically suggest the car models that you can buy depending on your choice.
- Quick Sell- a 15 day sell guarantee is given to to the seller. In case, the car does not get sold at the recommended price within that span of time, Truebil buys it.
- Used Car Comparison – The platform also enables users to compare cars based on data, with a motive to encourage interested buyers to make an informed decision.
Currently, the company claims to sell 200+ cars a month at a monthly GMV of 5 crores+. It lists more than 1000 cars a month- all inspected and certified.
Truebil makes money from the commission it takes on every sale. Also, it charges for its premium products like warranty and auxiliary services commission like loan, insurance and paper transfer.
How is it different from other existing players in this segment, e.g. Spinny and Droom?
“Droom is a B2C model. Totally different from us. We are more focused towards closing C2C transactions.
Spinny – we specialise in our product and service offerings compared to Spinny. Things like Quick Sell, Used Car Comparison, Car Recommendation, etc. Model wise, Spinny is trying to crack the same”, says Kalwani.
In the coming 12 months, the company aims to build a solid tech and product platform. It hold a vision of building a world-class innovating product which could make transactions happen directly on the platform.
It has plans of expanding its footprint to 4 cities in the next 12 months.
“We intend to build a product and tech focused platform for closing transactions for used cars online”- team Truebil.
Scope for Online Automobile Industry in India
Elaborating on the scope in this segment, Kalwani says, “Automobile has always been a fascinating space globally. Whether it is investors, start-ups or Silicon valley based entrepreneurs, automobile has always been a big play. The momentum in India started 1.5 years back. With only 3.5 Million used cars and 2 Mn. New Cars being sold, this number is projected to be at least 4X by 2020. So, there is tremendous scope in this space with respect to innovation in every segment whether it is transactions, post sales or aftermarket services like car repairs etc.”