CARS24 has announced the adoption of franchise business model to further strengthen its presence in tier 2 cities, with the inauguration of its first franchisee branch in Surat, the second largest automobile market in India. The newly announced business model will help CARS24 to expands its presence to new territories to Tier 3 and Tier 4 cities.
To ensure that all the franchise led branches replicate the values and processes of the company, CARS24 will also be infusing an investment of 10-15 lacs per franchise partner depending on the requirement of the location. The brand is not only following a meticulous detailed process to identify the right partners for the company but testing them on three key parameters – Entrepreneurial mindset, Capital and Integrity. On an average, the company is shortlisting 1 partner out of 200+ applications.
Commenting on the launch, Mr. Mehul Agrawal, Co-founder and COO, CARS24 said, “The pre-owned car industry in India has seen a rapid growth in past few years across peripheries and demands a more simplified model which can aid the complexities of consumer business. To achieve this, over the last 4 years, we have codified all the processes and created an internal playbook on how to buy quality cars at best price. As a next step, our key objective is to address the challenges that are being faced by the sellers and buyers of non-metro cities. We are filling the vast gap of a dependable partner in the used car segment and are associating the entrepreneurial spirit and local talent of non-metro cities with our platform for a seamless execution. The launch is in line with our business expansion plan and we intend to make more such announcements in near future.”