India's Largest Online Store for Automotive Accessories (Car/Bikes)

Opportunity Snapshot

  • Country: India India
  • Industry: Internet, eBusiness
  • Stage: Expansion/Growth
  • Investment size: $25,000,000 / min. $15,000,000
  • Type of investment: Debt, Equity
Car Accessories - Online Store Seeking Expansion As the number of internet consumers increases along with the number of cars being sold every year, there is a tremendous market for car accessories in India.

Investment Opportunity

Our online platform aims to be the one stop solution for all car accessories in India. It offers over 20,000 products related to the car accessories.

Proposal Summary:
Region: Karnataka
Industry 1: Automotive Products & Services
Industry 2: Internet, eCommerce & Apps
Business Stage: Breaking Even
Investment Reason: Sales & Marketing

Product Lines - Hot Products and Gross Margins:
• Car Care: 30%-40%
• Car Perfumes: 30%-50%
• GPS navigators 15%
• Music systems: 25%-50%
• Car Accessories: 30%-80%
• Car safety and security: 25%-40%
• Travel bags: 25%-40%
• Car Stickers: 30%
• Body covers: 40%-55%
• Car Floor Mats: 30%-40%
• Alloy wheels: 35%-50%
• Air filters: 15%-20%
• Auto magazines: 15%-20%
• Car garage tools: 15%- 25%
• Car washer: 40-50%
• Car seat covers-35%-50%

Current Stats:
• Number of transaction per day: 35-40
• Average Ticket Size: Rs.600
• Revenues for August 2014: Rs. 5,50,000
• Gross Margin: 40%
• Net Margin: 20%
• Growth Rate: 25% (Month-on-Month)

Management Team:
Sudhir. Sukrutharaj – Co-Founder & CEO
• Passionate about Internet Industry
• Worked for Amazon, HSBC, IndusInd Bank, Professional Couriers in the past
• MBA from Bangalore University

Rationale for the deal

Current Problems with the Car Accessories market:
• High prices
• Unorganized
• Low quality products (Online)
• Non-Availability of all the products
• Delivery Delays

We address these market gaps by providing a one-stop quality solution for the car accessories users.

Market Size:
• Current Market Car Accessories (2012): Rs. 3,000+ Crores
• Growth Rate: 20-25% Year-on-Year

As the number of internet consumers increases along with the number of cars being sold every year, there is a tremendous market for car accessories in India.

Why funding now?
• Timing is just perfect - As the internet consumers increasing along with the number of cars being sold every year, there is a tremendous market for Car Accessories in India.
• CarStudio.com enjoys an amazing growth rate (i.e. 20%-50%) every month in 2012 – FAST GROWING.
• A lot of online companies have been approaching us to support them from back-end.
• Currently, we supply car accessories to SnapDeal.com, CarDekho.com, FutureBazaar.com, Junglee, eBay, and more on the way.

Use of financing

Use of Proceeds:
• Marketing– Online, News Media, and Events
• Supply all the hot products to the petrol stations (across all the major cities) on a credit basis.
• Establish two ware-houses (south/north) to stock the hot-selling products on a high profit margin.
• Hire 20 more sales managers across India
• Establish a solid customer service centre
• Create two car service stations per metro city (across all 10 metros)
• Attract more business in rural areas

Opportunity for the investor

Capital Needed: INR 2,50,00,000
Minimum Investment: INR 25,00,000
Investment Reason: Sales & Marketing
Investor Role: Any

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