Tech

Brazilian digital auto marketplace InstaCarro revs up with $23M in funding – TechCrunch

InstaCarroThe Digital Marketplace, which connects used car dealers with Brazilian dealers, has raised $ 23 million in Series B round funding.

In particular, US-based companies such as J Ventures, FJ Labs and Rise Capital jointly led the investment. Spain’s All Iron Ventures and Big Sur also participated in the funding. In the latest round, São Paulo-based InstaCarro has raised more than $ 56 million since its inception in 2015.

As you know, the COVID-19 pandemic has allowed people all over the world to buy and sell things online. Cars are no exception. InstaCarro plans to take advantage of the shift and partially use the new capital to “aggressively” expand its reach in Brazil.

Until this year, the startup operated only in São Paulo. Earlier this year, it launched in eight new cities and is now based in Campinas, Curitiba, Joinville, Santos, Brasilia, Goiania, Rio de Janeiro and Belo Horizonte.

In context, this startup compares to Carvana in the US, Chehaoduo in India, and Carro in Indonesia.

CEO Luca Cafici launched InstaCarro after co-founding a car advertising startup in Asia with Rocket Internet. According to Cafici, the experience taught him that “advertising jobs did not solve the problems people had when selling their cars.”

Inspired by Auto1’s early success in Europe, he decided to return to Latin America to build a similar model. Since Brazil is the third largest automobile market in the world, we first focused on Brazil.

According to Cafici, InstaCarro is one of the largest used car buyers in Brazil today. Since its inception, the company has traded more than R $ 1 billion (US $ 193.2 million) and has worked with more than 35,000 people trying to sell their cars to dealers. Startups have grown 21% each month since the launch of COVID and have been profitable since 2019. Profitability is almost 10 times higher than it was before the pandemic, Cafici said.

In the future, InstaCarro aims to become a “full-service” car trading platform after hearing from customers that they are also interested in buying cars directly from the platform.

In the current model, the process looks simple. When a customer sells a car through InstaCarro, the company goes home to inspect the car, take more than 150 photos, and auction the car through a network of more than 4,000 dealers across Brazil. According to Cafici, the customer will receive the car bid within 24 hours and InstaCarro will pay the customer on the same day and handle all paperwork.

“Auctions are an important factor in achieving big prices because there is no agreement on the true value of used cars,” he added. “The more dealers we talk to, the higher the price.”

The startup is also planning to use the new capital to “improve coverage” of home checking models and improve the efficiency of the digital auction process, Cafici said. Naturally, we will also hire. InstaCarro has 120 employees and plans to double that number by 2022.

Prior to the pandemic, the company partnered with major supermarket chains to create inspection points. But when the pandemic began, car inspections began at the seller’s home, proving that the company would move and grow faster, Kafichi said.

“The pandemic forced us to reinvent our business model. Before the lockdown, most of our work relied on a central inspection site, so we had to shut it down overnight in March 2020. There was, “he told TechCrunch. “Last year was challenging and frightening for our customers, dealers, and our team. Our team has a business model centered on home inspection so that we can continue to do business in a safe way. We worked hard to reinvent the wheel. Instead of taking the client to the inspection site, we started going to the client’s driveway. “

Today, over 90% of the company’s customers choose to do everything online.

“It’s growing faster than ever,” said John Nordin of The Ventures, impressed with how the company changed its business model after the COVID hit.

“Digital car dealers are successful in markets around the world, from the United States to the United Kingdom, Indonesia and Mexico,” said Nordin. “One or more teams building digital car dealerships in Brazil not only understand how to adapt their models to Brazilian consumers, but also many to address the operational challenges of huge buying and selling. We’re reducing work. Daily car volume. InstaCarro has the right team to tackle future challenges. “

Brazilian digital auto marketplace InstaCarro revs up with $23M in funding – TechCrunch Source link Brazilian digital auto marketplace InstaCarro revs up with $23M in funding – TechCrunch

Related Articles

Back to top button