Triggered by his own experience of unmet needs as a youngster, Balaji Kaisetty set up NayaGaadi as a Multi utility platform to meet the automobile needs of the Rural India.NayaGaadi.com is on the road to revolutionize the new automobile buying experience by using the online channel.
The Early Story
Hailing from a rural village in Andhra Pradesh called Thadukupeta, Nagari Mandal of Chittoor District, Balaji Kaisetty admits that his certain desires and needs were not met during his younger days due to the rural market dynamics, especially when he wanted to own a bike and tractor of his choice! “The rural Indian automobile consumer is 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 one up. This left a lasting impression on him.
After spending 20 years in Global IT Companies like IBM, Hewlett Packard, Wipro Technologies in various roles, He, along with Sangeetha Thulasi, setup NayaGaadi in 2015. NayaGaadi is rural India’s first multi utility marketplace for all new vehicles. The platform connects all brands, and categories of new vehicles under one roof. NayaGaadi is currently operating in Bengaluru (Karnataka) and Berhampur (Odisha) and has served customers in four Indian states (Karnataka, Telangana, Andhra Pradesh and Tamilnadu) and plans to expand to 30 more Tier -1 cities in the next 2 years.From every Tier-1 cities thousands of rural and semi rural areas will be supported..
Digitizing Automobile Retail with NayaGaadi
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. Essentially, NayaGaadi is a solution to India’s Automobile Industry problems and its Bridging the Gap between Urban and Rural Automobile dealerships and consumers by bringing transparency, flexibility, simplicity and convenience. 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.
For the buyer, NayaGaadi offers a platform that allows them to buy a new vehicle – autos, bikes, mopeds, cycle’s, cars, buses, passenger vehicles, commercial vehicles, and more –with home delivery facility. Balaji explains that on the seller side, it acts as a platform for launching new electric vehicles and mobility solutions to help 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 to understand 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 (Original Equipment Manufacturer) 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. Nayagaadi uses Technology and marketplace model to reach grass root level auto consumers and positioning themselves as an emerging channel for Automobile companies and Dealers. Automobile Industry will see NayaGaadi as a discovery, demand and delivery platform for new vehicles.
Offering what customer wants
The best way of doing and growing business is delivering what customer needs and how he needs it. India has come a long way and the current Internet and Mobile penetration has changed the Indian and Business Landscape. NayaGaadi is able to educate and provide awareness about their platform and services to make the impact. It has come a long way from when it started and currently has more than 100 + dealers and 15 manufacturers registered on its platform.
Handling huge online transactions
Consumers are very conservative when it comes to making huge payments online. However, the landscape changed with many ecommerce players delivering the goods safely and helping the ecosystem to make reliable and safer online payments. Thanks to many innovative modes of making payments like wallets, QR Code payments, Payment gateways, Virtual payments, Online EMI payments and App based payments which makes online payments easier, faster, traceable and safer. Balaji believes that it is a matter of time for consumers to get comfortable in making online payment for amount that complements a new vehicle purchase.
Not without its own challenges
“We faced numerous challenges in convincing the dealers, manufacturers and customers,” recalls the founder. He says that attracting top talent for a bootstrapped startup is a difficult and time consuming process. “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 that soon our team will grow faster to meet the demands of the business” says Balaji.
It is tough for any player to meet the demands of a diverse segment of customers in traditional way. However, that’s where technology enabled solutions makes scaling a reality. NayaGaadi is handling this problem with trusted Rural Agent Networks(RAN) creating rural employment and trust which helps technology platforms to provide value and make personalized 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 awareness about the company. The company also uses social media platforms like Facebook and LinkedIn actively.
“Investors also realized that automobile sector needs to change the way it does business due to globalization and changing digital landscape of the country. And so, a transparent and convenient buying experience is needed 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 stakeholders in the ecosystem,” he says.
NayaGaadi 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( now it is known as Smartron Tronxone E Bike ). “Our ticket size last year ranged from Rs. 50,000 to Rs. 18 Lakhs and the average ticket size now stands at 13 lakhs.” says Balaji.
Rural Agents and Franchise model
NayaGaadi is looking at tapping the rural youth to build its rural agents network and also create multi brand experience centers run by NayaGaadi franchise network.We are currently in the early stages of the development and working on this process.
NayaGaadi journey is recognized by the eco system in various ways. Some of the recognitions / Awards are:
Selected as launch pad startup from - IIM Bangalore – NSR CELL
Incubated at Govt of Karnataka and IAMAI Mobile10X, NASSCOM
Govt of Karnataka ELEVATE 100 Winner
ET Power of Ideas 2017 - Phase-2 Selected start up.
IIM Calcutta - Smartfifty.com - Top 3000 Selected start up.
Tech in Asia recommended 'NayaGaadi' as curated start up to invest in Asia.
The Company aims to stabilize its technology platform and get more dealers on board, work on its product range, brands and portfolio to help the consumer take an informed decision. In the immediate future, it aims to enter few rural districts in Karnataka. It has also launched operations in Orissa, Barampur District. As a part of its initial expansion in South India, it is targeting five major Tier 1 cities including Hyderabad, Vizag, Vijayawada,Chennai and Cochin.
In the next two years, it plans to enter 25 tier 1 cities in other parts of India. 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. It aims to stabilize its technology platform and get more dealers on board. “We are trying to raise an initial pre-seed round of Rs. 3 crore to Rs. 5 crore to aid our expansion plans in south India and grow faster in this vertical.
NayaGaadi aims to build a sustainable new retail ( both online and offline ) experience, customer driven company solving India’s traditional problems.We are trying to build a company which is scalable and sustainable and plans to be listed in Indian stock market in the near future. NayaGaadi will utilize all the technology benefits to create mass employment opportunies in the rural India. Think New Vehicle and Think NayaGaadi ”says Balaji as a concluding note.