Bengaluru, October 2, 2018 : Govt of Karnataka Elevate 100 winner, NayaGaadi is India’s First Multi Utility Marketplace for all new vehicles set up with the aim of helping the underserved, under represented and under recognized rural auto consumer by offering personalized service and delivery options. Started from Siliconvalley of India, Bengaluru ( Karnataka) and also made soft launches in Berhampur ( Odisha ), serving customers in and around Bengaluru-Karnataka, Maharastra, Telangana, Andhra Pradesh and Tamilnadu. The company aims to enter 30 Tier 1 cities in the next 1 years and is looking at raising pre-seed round to aid faster expansion plans.
Hailing from a rural village from Andhra Pradesh called Thadukupeta, Nagari Mandal, Chittoor District (which is famous for mango market), Balaji Kaisetty admits that Rural and semi rural consumers are always deprived of getting best brands and services and majority of the companies have ignored them duo to feasibility and viability of their limited volumes. Especially automobile sector where the brands have little presence in rural India. “The rural Indian automobile consumer are grossly underserved,” opines he. There are no showrooms or dealers, no service centers in many rural parts of the country as it is unviable to set up one. This left a lasting impression on him. And after spending 20 years in the IT industry in Global IT Companies like IBM, Hewlett Packard, Wipro Technologies in various roles, he decided to do something for the rural India. And hence, he along with Sangeetha Thulasi, who also has a similar background, setup NayaGaadi in 2015, rural India’s first multi utility marketplace for all new vehicles.
NayaGaadi offers personalized service and delivery, be it multi brand test drives, vehicle financing needs, insurance assistance, registration, deals and discounts and takes care of last mile delivery.
The company is mentored by IIM Bangalore – NSR Cell and a launch pad start up, incubated by the Government of Karnataka IAMAI’s Mobile 10 X platform and is also the Government of Karnataka ELEVATE 100 Winner. It is also a recognised startup by Government of Karnataka KBITS and Govt of India’s Startup India recognised startup.
Working on India specific platform : NayaGaadi’s solution addresses the automobile needs of a rural consumer by connecting them to all brands, under all categories of new vehicles. Its technology driven marketplace connects dealers, automobile manufacturers, banks, financing companies and insurance companies and consumers. The platform facilitates test drives, vehicle loans, and insurance assistance and aids last mile delivery of the vehicle.
For the buyer, NayaGaadi offers a platform that allows them to buy a new vehicle –autos, bikes, mopeds, cycles, cars, buses, passenger vehicles, commercial vehicles, and more –with home delivery facility. On the seller side, it acts as a platform for launching new electric vehicles and mobility solutions and helps new age EV startups reach their target audience within a short span of time. Additionally, this platform also connects body builders, fabricators, custom design specialists in the automobile sector with the new vehicle consumers for their needs. “This will help consumers get standardized service, cost and quality deliverables with simplicity as a key focus,” says Kaisetty.
To make all this happen, the company has established partnerships with dealers and OEM manufacturers across categories. It gets its revenue from every new vehicle sold through its platform in the form of commission from dealers, OEMs, banks, insurance companies and value added product vendors.
A Quick Snapshot of NayaGaadi :
NayaGaadi.com is Rural India’s first Multi Utility Market place for all the Brand New Vehicles.
NayaGaadi is on the road to revolutionize the NEW automobile buying experience by using the online channel. It aims to …
• to be a single window for all services and products related to the new automobile buy
• attract a significant market of online customers looking for a best deal
• be an avenue for dealerships to improve sales by create an online sales channel and
• be an launch pad for introducing Electric Vehicles, Mobility Solutions before reaching the offline mode
• Offer customization needs of Automobile Industry.
NayaGaadi uses the Technology Driven marketplace to connect Dealers, Automobile Manufacturers, Banks, Financing companies and Insurance companies and consumers. The platform provides test drives, vehicle loan assistance, and insurance assistance and delivers the new vehicle at the door step of the consumer.
Its Discovery, Demand and Delivery platform for all new vehicles from Auto to Aircraft.
In India 50 % of the new vehicles are sold in rural and semi rural and it does not have any Automobile dealer showrooms, service centers, banks, RTO offices. New Vehicle consumers have to go anywhere 30 to 100 KM to buy a new vehicle. They have to travel and spend couple of days to weeks to buy a new vehicle. There is no presence of Automobile companies or their dealers. Customers have to go Cities and towns to get the Test Drives, Vehicle Loans, Insurance, Documentation and registration. NayaGaadi is addressing all this via its Marketplace model combining with Rural Agent Network (RAN) providing a seamless buying experience to the customers.
NayaGaadi’s business model is a marketplace model and generates commission for every Vehicle sold via its platform. Its transaction based model and gets revenue from every transaction from dealers, banks and insurance companies.
NayaGaadi Experience Centres:
NayaGaadi is working on launching its first multi brand, multi category automobile experience centre soon to meet the ever growing and unfulfilled demands of the auto consumers. Look for more updates on this area soon.
Not without Challenges..:
New way of doing Business and offering what customer wants:
The best way of doing and growing business is delivering what customer needs and how he needs. India has come a long way and the current Internet and Mobile penetration has changed the Indian and Business Landscape. “We faced numerous challenges in convincing the dealers, manufacturers and customers,” recalls the founder. NayaGaadi is able to educate and provide awareness about our platform and services to make the impact. However, it has come a long way and currently has more than 200 + dealers and 20 manufacturers registered on its platform.
More Awareness : We are utilizing the internet, social media, online and offline networks to reach out to the customers in our early stages with various awareness initiatives .
Scaling : India is a very complex, traditional and multi languages speaking country. Its tough for any player to meet the demands of diversed segment of customers in traditional way. However, that’s where technology enabled solutions makes scaling a reality. We are handling this problem with Trusted Rural Agent Networks(RAN) creating rural employment and Trust which helps Technology platforms to deliver Value and personalised service and delivery seamless.
Talking about marketing strategy, Balaji admits that as a bootstrapped company, their marketing budget is quite low. However, its customers, who are their early adapters, have become their brand ambassadors and spread the awareness about the company. The company also uses actively social media platforms like Facebook and LinkedIn.
Investors also realised that automobile sector needs to change the way it does business as the globalization, changing digital landscape of the country needs transparent and convenient buying experience when a customer is trying to buy a new vehicle, opines Balaji . However, for the dealers and automobile manufacturers, online transactions mean discounts. They are very conservative about the technology platform. But, we are able to demonstrate its benefits to all the stake holders in the ecosystem,” says he.
Among the other challenges, the founder says that attracting top talent at bootstrapped state is a very difficult process and time consuming. “It is even more complex when you are not funded. However, we are passionate about the problem we are trying to solve and we are sure soon our team will grow faster to meet the demands of the business” says he.
NAYAGAADI enters into New Vehicle Leasing Support Business : NayaGaadi recently partnered with some of the best Car and bike service app based company and Cycle and E Bike rentals companies who are solving last mile convexity. NayaGaadi is helping these companies to get more vehicles on their platform and provide fixed leasing / rent payments every month for the 36 months and 48 months contract. NayaGaadi is reaching out to rural and semi rural investors who have limited knowledge in the space but want to invest their capital to grow with the company. For NayaGaadi help create the employment using Technology is a passion and help india create more employment by deploying capital in right business and grow in a sustainable manner.
NayaGaadi Vehicle Leasing Partner Interest form : https://goo.gl/forms/kqGmzaZ3SNYrUBnq1
Where to from here.. ?
It currently works with 10 banks and has sold more than 70 vehicles worth Rs. 3.5 crore and has aided 500 + test drives, so far. The company has even facilitated the launch of India’s first cross over Electric bike called Volta-Zap. “Our ticket size ranges from Rs. 50,000 to Rs. 40 Lakhs,” says Balaji . ( last year ) and the average ticket size now stands at 13 laks.
Unique Value Proposition : Essentially, NayaGaadi is a solution to India’s Automobile Industry problems and its Bridging the Gap between Urban and Rural Automobile dealerships and consumers, Bringing Transparency, Flexibility, Simplicity and convenience. We are using Technology and marketplace model to reach gross root level auto consumers and positing ourselves as a emerging New Channel for Automobile companies and Dealers.
Expansion and Investor reach out : Currently, NayaGaadi is in advanced stage discussion with some of the global automobile players entering India to help and assist them to reach rural India innovatively. We are looking to raise Rs 3 to Rs 5 Crore initial seed round of funding and aiming for IPO in the next 3-5 years.
We plan to utilize the initial pre-seed round capital to aid our expansion plans in south India and grow faster in this vertical. Infact, it is the right time for the angels, HNI’s to look at our model and be part of the huge opportunity we are trying to make a mark… Think New Vehicle and Think NayaGaadi ” says Balaji on a concluding note.