- Okshan on boarded 4000 brokers, used car dealers and new car dealers in just three months of its launch
- Aims to Onboard 2,00,000 Dealers per month in next three years
- Okshan to expand PAN India In Q3 2021
- First Used Car Marketplace Offering Access To Real-Time Bidding
Okshan, India’s first and only B2B virtual marketplace for used cars is planning to onboard over 2,00,000 used car dealers, brokers and new car dealers with an aim to sell 50,000 cars on its platform and clock INR 10,000 crore Gross Merchandise Value (GMV) by 2026
To fund the rapid expansion, Okshan has partnered with Ernst & Young to scout investors for Series-A round.
Okshan is a B2B online marketplace that connects car dealers and car brokers to enable buying and selling of used-cars on its platform from the assured inventory on a real-time basis. It is promoted by a veteran of the Industry Mr. Ranjeev Dahuja who owns and operates Car Dealerships across Northern India for the past 2 decades. It is this familiarity with the pain points that the industry faces with the Used Car segment, that guided him to launch Okshan platform in-order to solve the problems existing in the current Used Car Value chain.
The platform envisions to provide structure to the current fragmented offline used car market in city/township, through its technology, with a transparent and seamless online ecosystem. To expand its operations, it is in talks with potential investors to raise funds for their Series-A round, for which they have appointed Ernst & Young as their financial advisor.
Ranjeev Dhauja, Founder and CEO, Okshan said, “What exists today in each city in some shape & form of a car-bazaar in a very informal, opaque and limited reach/option perspective is now being brought online through this platform to have complete transparency, seamless transaction flow and whole host of services, enabling door-step pick-up and drop for brokers and dealers, with utmost peace of mind.”
“With other ancillary services build on top of the platform; Okshan acts as a virtual market place where the entire ecosystem of brokers, dealers, used car portals, corporates and the existing used car aggregators can do business.” he added.
Globally used car segment is 2.5 times the new car segment and it is true not only of developing nations but developed countries as well. In India, however the car penetration itself is only 3% as against 17.5% in South Africa and 38% in Brazil hence there is huge headroom to grow. The used-car to new-car sales multiples are low at 1.5 times (as per SIAM) which means the used-car space has even larger headroom for growth and is expected to grow faster than the new-car market if provided the necessary boost.
The used-car market is projected to rise from the current level of USD 19 Bn to USD 40 Bn in 2025, growing at a CAGR of 17%. The used-car market is projected to represent $40 billion of GMV and offer $7 billion of revenue-generating opportunities for value-chain participants by the year 2025.
Organized sector contribution in this is abysmally low at 5% and much needs to be done to consolidate this largely fragmented space.
Anjani Mishra (He/Him), COO, Okshan said, “With this growing opportunity, we believe that Okshan will play an instrumental role in expanding the organized used car market. After successfully launching in Haryana, Punjab, Chandigarh Tricity and Delhi NCR, we are aiming for PAN India expansion by the 3rd Quarter of 2021.”
Moreover, “low car penetration in the country & favorable macroeconomic trends indicate a significant scope of expansion. An increased need for personal mobility among price & value-conscious customers shall further aid growth”, he added.