Source: Entrackr
Garaaz, a Jaipur-based startup that connects vehicle repair shops with auto spare parts suppliers, has raised ₹4.55 crore ($530,000) in its seed funding round, led by GVFL (Gujarat Venture Finance Limited).
Garaaz intends to use the newly raised funds to expand its operations into additional Indian cities, enhance its technology and support and logistics system. The company is trying to add convenience for workshops by helping them source the right auto parts quickly and reasonably priced.
What Garaaz offers
Founded in 2019, Garaaz – Shaleen Agarwal is a SaaS platform enabling vehicle repair workshops to procure spare parts from multiple suppliers. Garaaz offers access to over 8 million parts from 25 car brands.
The platform was built to solve common problems specific to the auto parts industry that include:
- Finding the right part is impossible
- Prices are ambiguous or too high
- On-time delivery is non-existent
Garaaz provides facilities for:
- Finding parts quickly
- Managing orders
- Tracking deliveries
- Analytics and reporting
- This enables workshops to operate more smoothly and efficiently.
Business Model
Garaaz has a revenue model that combines:
- SaaS subscription – workshops pay to use the platform.
- Transaction commission – a small fee on every order.
- Value added services – delivery and insights from data.
This allows the company to grow and add value for its users.
Significant Growth and Future Plans
Garaaz has reportedly experienced 3X growth over the past two years, according to the company. It also said it saw sales double in FY 2024–25 compared to the prior year, which further indicates that more workshops are transitioning online and realizing they can improve their business using digital tools.
With the funding, Garaaz intends to plan on :
- To expand more into more states and cities.
- To add more suppliers and workshops to their network.
- To upgrade its platform with better features.
- To improve delivery and its customer support.
Competitive Landscape.
Garaaz works in a competitive landscape. Other startups such as Boodmo, SpareIt, Koovers, and Automovill are a part of B2B auto parts too but Garaaz believes its focus not only on the software, but also logistics, are one of their competitive advantages.
With additional funding and clarity on its future plans, Garaaz is deliberately positioning itself in the B2B auto parts space by offering greater access to its platform, enhancing its technology, and improving its logistics network which in the end will allow them to connect with increasingly more workshops throughout India.
