Siddharth Agarwal, CBO, Autos at OLX India, discusses how their collaboration with IDFC FIRST Bank is a significant step towards transforming India's pre-owned vehicle financing landscape, which is projected to grow at a 25 per cent CAGR, reaching an impressive Rs. 1600 billion by FY 28.
He shared how this alliance will simplify financing options for millions of OLX users, bringing accessible, on-platform solutions for pre-owned cars and bikes.
What are the main goals of the partnership between OLX and IDFC FIRST Bank?
The Indian pre-owned car financing market is projected to experience phenomenal growth, with a Compound Annual Growth Rate (CAGR) of 25 per cent, translating to a market size of Rs. 1600 billion by FY 28 from the current Rs. 485 billion. Source - OLX Mobility Report FY23-FY28.
This partnership aims to simplify the process of buying pre-owned cars and bikes by offering quick and easy financing options directly on the OLX platform, enhancing user convenience. The collaboration aims to provide more than 35 mn OLX customers access to “quick and easy vehicle-financing solutions” directly on the OLX platform. Buyers can avail easy financing solutions while buying pre-owned cars and bikes, avoiding the hassle of visiting multiple websites.
Are there plans to collaborate with other automobile brands in the future?
We are committed to improving our customers' experience, and in order to achieve this, we are open to strategic collaborations that streamline the buying and selling of pre-owned goods and services. Through partnerships, we aim to deepen our expertise in used goods transactions, particularly in the automotive sector, and solidify our leadership position in the used goods market
Can you elaborate on how the partnerships with Cars24 and Royal Enfield aim to enhance the platform's user experience?
OLX aims to establish strategic partnerships to position itself as a comprehensive destination for consumer needs, improving their journey of buying and selling used goods and services. By collaborating with established players offering relevant technology-led solutions, we will offer our customers comprehensive, seamless, and user-friendly experiences.
OLX had formed two such partnerships with leading players in the used cars and used bikes sector, one with Cars24 and the other with Royal Enfield.
The partnership with Cars24 harnesses the synergies between the platforms, offering consumers an expanded array of options with enhanced features, including warranties on these cars, an industry first for purchasing and selling pre-owned cars on a used-goods platform.
The collaboration with Royal Enfield facilitates seamless access for potential buyers of Royal Enfield bikes to buy certified pre-owned Royal Enfield motorcycles directly through the OLX platform.
How does OLX India plan to leverage technology, such as AI and data analytics, to further improve the customer experience and streamlining transactions on its platform?
OLX leverages advanced technologies like AI, data analytics, and machine learning to enhance user experience. This includes implementing advanced search algorithms, personalised recommendations, and AI-driven customer support for seamless interactions.
Integrating secure payment gateways and encryption protocols for safe and streamlined transactions. Offering multiple payment options, ensuring privacy protection, and optimising the checkout process for enhanced user convenience. Utilising data-driven insights to optimise platform features, content, and services based on user behaviour and preferences.
Improving user engagement, retention, and conversion rates through data-driven strategies and continuous optimisation efforts.
