Earlier on Monday, November, 26th, OLX, an online marketplace for pre-owned goods, officially announced the offline expansion of its used car business, as it went on to reveal its plan to have as many as 150 outlets in 40 cities across India by the year 2021.
As per reports, The company, that currently runs a pilot in six major Indian cities with around 30 outlets, has boosted its business in recent times under ‘OLX Cash My Car’ chain in a joint venture with Berlin-based Frontier Car Group (FCG).
According to Amit Kumar, head of OLX Cash My Car and OLX India Vice-President he claims that as the used car market is growing at 15-16 per cent annually, the company remains bullish about its new offline business for pre-owned vehicles.
In a statement, the OLX India Vice-President and OLX Cash My Car head said, “We plan on expanding OLX Cash My Car in the top 40 cities in India with about 150 outlets by the year 2021.”
As per reports, currently, OLX Cash My Car has 27 stores in the capital, Nodia, Gurgaon, Faridabad, Bangalore, Ghaziabad, Hyderabad, Mumbai, Chennai and Pune.
Kumar then revealed that OLX would proceed further with its offline expansion plan in partnership with FGC, which has South Africa’s technology investor Naspers as a major investor.
In a statement, Amit Kumar said: “With our (OLX) local reach and know-how, it is a winning combination for both channel partners as well as users.”
Amit Kumar then further added, mostly, “OLX Cash My Car stores are company-owned mostly, and we would like to follow with this model as we are looking at almost all new stores to be owned by us.”
When questioned about how the investments that will be put in for the expansion of used-car retail business would be utilized, Kumar refused to give a comment.
Kumar was reportedly quite Bullish on the new venture, as he said that 10 million users are from the cars category out of the 40 million monthly users of OLX.
Kumar concluded by saying, “For us, this happens to be our main area of strength.”