Why did BidWheelz start?
In the year 2018 while working with his father in the family business, Nakul was visited by his friend Pratik to sell a Honda City 2012 model. While exploring options to sell the vehicle at an optimum price, the maximum offer received was Rs. 3.95 lakhs even though the estimated value of the vehicle was Rs. 4.5 lakhs as pondered by Nakul given his car selling industry background. Nakul was able to help in selling the car at 4.35 lakhs while exercising various options, which was more than 10% of the maximum offer received by Pratik. Sensing an opportunity to build value for resale vehicle owners while selling their vehicles Nakul shared the potential business idea with Sameer and soon the duo joined to start BidWheelz.
On further exploration they found that banks, institutions and car makers also face issues in selling second hand vehicles. Hence the model was pivoted as a B2B model and now BidWheelz is an official auction partner for Banks, Government and Institutions. BidWheelz helps them sell their vehicle through transparent auctioning without storing any inventory and thereby providing the best price for their vehicle.
Existing positioning/ services of the company
The Company started in 2018 in the C2B model and has now pivoted to the B2B model. In this space, BidWheelz is the only player working through a transparent auction method where there is no need for mega events or high margins in the middle. Though there are players in this space who stock up and work on an inventory basis and have margins in the middle. BidWheelz works on a completely INVENTORY FREE and asset light model and collects subscription charges.
BidWheelz is the only ONE STOP SOLUTION provider for buyers with services, loans, insurance, and RC transfer services.
BidWheelz biggest competitor is Droom , which works in the classified listing manner with all services.
Initial journey
Coming from a car dealership background, Nakul faced many difficulties in the beginning of this journey and was under tremendous pressure due to uncertainties in the business. The resale market today is still being derived by buyers & there is no one to suggest the right price. This is mainly because the current players stock up the vehicles and hence there is a window to help the sellers and the companies to get the right price of the vehicle through a transparent auction platform. At BidWheelz they are also helped with the sell price range which in turn, standardizes the market. Despite various issues, the thought of changing the industry & providing value to customers kept Nakul going.
During the second lockdown in 2020, BidWheelz had a very hard time due to cash flow issues, employee turnover though “we found a way to start back again & became more determined & found a big anchor support in association with ICICI bank” recollects Nakul.
Future prospects/ outlook
The future of the automobile industry is changing fast and there will be a big shift from engine vehicles to electric vehicles. One of the reasons not to stock up is the shift that is being experienced. In the future, BidWheelz will also tap the new electric vehicle market by getting them on the platform for the sale of the new vehicle which will promote the sale of electric vehicles in the market. BidWheelz wants to tie up with the local bodies and help them also grow by providing their services through the platform and certifying it by giving the customers assurance and creating a trustworthy brand in the resale auto sector.
