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Business News/ Technology / News/  OLX India drives growth in pre-owned goods market, eyes wider categories: MD & CEO Amit Kumar

OLX India drives growth in pre-owned goods market, eyes wider categories: MD & CEO Amit Kumar

After acquiring OLX India, CarTrade Tech's user base surpassed 70 million, with OLX contributing over 35 million unique users. The pre-owned goods market in India is expected to grow rapidly, driven by factors like consumer awareness and internet penetration, says OLX India MD & CEO Amit Kumar.

Amit Kumar is the managing director and CEO of OLX India. Premium
Amit Kumar is the managing director and CEO of OLX India.

Indian online auto classifieds platform CarTrade Tech acquired OLX India operations last year. With the addition of OLX, CarTrade Tech’s user base has grown exponentially to more than 70 million active users, according to Amit Kumar, Managing Director and CEO of OLX India. 

In an email interview with LiveMint, Kumar said that out of CarTrade Tech’s 70 million active users, OLX as a platform contributes more than 35 million unique users. Kumar also talks about the growing market for pre-owned goods in India, the expansion plans and the future of the sector. Edited excerpts from the interview: 

CarTrade Tech recently acquired OLX. How does it impact the company’s growth trajectory? What is the larger goal of the company?

After the acquisition of OLX India operations by CarTrade Tech, we have significantly bolstered the group’s presence in the online classifieds market. With the addition of OLX, CarTrade Tech’s user base has grown exponentially to more than 70 million active users. OLX, as a platform, contributes more than 35 million unique users. 

Also Read: The Thriving Global Market for Used Cars

OLX is unlocking significant consumer value in categories like used cars, used bikes, real estate, used smartphones, jobs and pre-owned consumer durability through enhanced product-led solutions based on deep consumer insights. OLX contributes more than 30 per cent to the group’s overall revenue and is on a steady growth trajectory.

What other expansions and initiatives have you planned for the future?

OLX is forging multiple partnerships to address consumer needs across all our focus categories, and our recent partnerships with leading players like Cars24 (Used Cars) and Royal Enfield (Used Bikes) have been a step in that direction. 

How do you rate India’s pre-owned goods market? What is the future of this market? How does OLX India fit in this?

The global pre-owned industry was pegged at $160 billion in 2023 and is expected to reach $850 billion by 2034, growing at 16 per cent per annum. The growth of online classifieds like OLX is highly influenced by factors such as the shift from lower-income to middle-income consumers to fuel demand and smartphone and internet penetration to drive trial and adoption.

Also Read: India to have around 900 million internet users by 2025: Report

Over 50 per cent of Indians are active internet users now, and it is set to reach 900 million by 2025.  Also, with the increasing consumer awareness around the circular economy in India, which is likely to touch $2 trillion by 2050 (Source: CII), the Indian pre-owned goods market is bound to grow at an accelerated pace.

Which products are in demand in the pre-owned goods market?

OLX is expanding its focus to encompass a wider range of categories, including real estate, jobs, cars and bikes, consumer durables and smartphones. To share an interesting insight on how our platform reflects consumer trends, with the onset of summer, we witnessed a huge spike in the consumer durables category with a high demand for ACs. In March 2024, the demand grew by 250 per cent as compared to the last 3 months across all markets.

Where do you see the market five years down the line?

The online marketplace models will continue to evolve to meet the needs of consumers. Fuelled by surging consumer demand and a rapidly expanding market, the pre-owned goods sector is poised for significant growth, particularly in categories like real estate, jobs, consumer durables, smartphones, and cars and bikes. Online marketplaces are enhancing user experiences by integrating advanced payment and logistics solutions.  

Also Read: Royal Enfield Hunter 450 and Scram 650's spy shots leaked! What to expect

We will also see easy financing for high-value pre-owned goods growing. According to the 7th Edition of OLX Mobility Report, The pre-owned car financing market is projected to grow at a CAGR of 25 per cent from 485 billion in FY23 to 1,600 billion by FY28.

What measures are taken by OLX to ensure the online safety of their consumers?

As a consumer-centric brand, we take trust and safety as a key priority across functions. For the safety of our consumers, we take multiple measures, such as educating them through safety videos at every stage. OLX collaborates with law enforcement agencies and uses data-driven insights to proactively ensure platform safety.

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Published: 08 May 2024, 04:27 PM IST
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