Deven bhai… Caravana is in a similar field. But, with a fundamental difference. They are used car dealers. Whereas, Cartrade provides tech.
Caravan would invest in cars they’d want to sell, Cartrade doesn’t do that. It is an asset light model.
So, the revenue model is very different. Cartrade’s revenue comes from putting tech in place for online car dealers, sellers. They are a Platform as a service (PaaS).
One of their platforms facilitates sale of new cars as well (cartrade.com). There is one for car auctions etc.
What I like about this company is their asset light model.
Fixed Assets 1041 Cr
Intangible Assets 898 Cr
Net Fixed Asset only 143 Cr, against this they have generated revenue of 82Cr in June quarter alone. And I believe they are just getting started. Unique user growth YoY is 47% That I find very interesting.
They have cash reserves. I want to know what are their plans to invest this cash, and will it successfully add to the top line.
As per-capita income grows the used and new car market segment will grow. Cartrade Tech is the undisputed online leader. All we need to know is whether the management is astute enough to ride this wave.