Canaan Makes A Deja Vu Investment In Indian Used Cars
Emerging markets like India are still catching up to U.S. consumers’ comfort level with buying cars through online marketplaces like eBay (EBAY) and AutoTrader.
“I don’t think India is ready for that,” Canaan General Partner Deepak Kamra said.
But the firm believes it won’t be long before some of the Internet-bubble breakout businesses that found traction in the U.S. years ago, do the same in India. That bet has led Canaan to invest in MotorExchange, a New Delhi-based online dealer-to-dealer marketplace for used cars.
“We figure India is probably 10 years behind the U.S., but given its growth and a trend of upgrading from scooters to four wheels we believe there’s a lot of opportunity in used cars,” Kamra said.
