Startup Snapshot
Industry: Secondary Automotive Marketplace
Business Model: B2C Marketplace
Founder: Adrián Gómez Lozano
Location: Mexico
HQ Location: Monterrey, Mexico
Team Size: 15
Founded: 2018
Investors: Angels & Friends, and Family
Website: Carvi
What does Carvi do?
Carvi is a digital marketplace for buying and selling preowned cars. It provides a convenient platform for sellers to upload their vehicles, receives instant quotes, and schedule inspection appointments. If the vehicle meets their criteria, Carvi will offer the following options: immediate purchase, consignment, and trade-in.
In any case, the car will need to undergo reconditioning and detailing before being offered on their marketplace.
Carvi goes the extra mile by offering fair prices on the buy or sell side, transparency on the condition of their vehicles, and safety to ensure a worry-free buying or selling experience. They also provide automotive financing options through partnerships with banks and their own credit services.
What's your backstory?
Adrián completed his Industrial Engineering studies at ITESM and pursued an MBA at Chicago Booth. He dedicated 10 years of his career to Dupont, starting as an internal consultant and transitioning to a commercial role for North LATAM. Eventually, he relocated to China, where he took on the role of Marketing Director for the region.
How did you come up with the idea?
Adrián's fascination with the used auto industry stemmed from the stark contrast he observed between the Mexican market and companies like Carmax and Carvana in the US. In Mexico, a lack of trust, guarantees, and consumer knowledge created an environment filled with uncertainty and apprehension. Consumers only engage with the market once every few years, leading to an information asymmetry between buyers and sellers and leaving consumers vulnerable to risks and insecurity.
Motivated by the belief that a change was needed, Adrián set out to do things differently in Mexico. His company's mission centered around establishing fair, transparent, and secure transactions for buyers and sellers.
How did you acquire your first customers?
Carvi acquired its initial customers through targeted marketing campaigns on various channels, including Google AdWords, Google Images, Facebook, and Instagram.
What's your motivation?
Adrián firmly believes in doing business without taking advantage of consumers. Transactions can be conducted fairly, professionally, and transparently, ensuring benefits for both parties involved and creating a successful business.
Fun fact: Carvi was initially named 'Ni Un Limón,' which translates to 'No Lemons.' This name choice was inspired by the aim to eliminate unreliable and subpar vehicles from the equation, referencing the concept of "lemon" cars.
What's next for Carvi?
Carvi is set to introduce a new service that facilitates inspections for private transactions between individuals, matchmaking between sellers and buyers, and improving their credit offering for subprime lending. This expansion aligns with Carvi's vision for regional and national growth, as they plan to replicate their successful operation in other parts of Mexico, bringing their trusted platform to even more customers.
Tips for other founders:
Don't wait for everything to be perfect to launch. If you wait for your platform to be exactly how you want it, you will never launch.
Continuously explore new ideas, test different approaches, and adjust.
Avoid assumptions. Sometimes it is better to try things out and see how the market responds.
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