From MVP to Auto Market Leader: The Success Story of Karvi's Business Scalability
Due to the great quality of the digital product that was built, Karvi raised a Series A venture capital investment of USD 16.6M, which allowed them to keep growing and made them leaders in the auto market in Latin America.
The project in a nutshell
The Challenge
The Karvi team approached us with specific needs and milestones so their MVP could have the essential features to enable faster time-to-market, attract first customers and position themselves in the auto market industry in Latin America. When our partnership started, Karvi was looking forward to raising additional funding from their investors.
The first challenge of the project was to launch their first website in only 2 months. Afterwards, the team had to integrate the CRMs of selected car dealers with Karvi’s CRM Pipedrive in 6 months. Finally, we fully launched the product, integrating it with more than 17 different CRMs in 10 months.
The ultimate goal was to keep on growing their MVP architecture into a scalable robust platform.
The project’s tech stack
Solution
As technology partners for Karvi, we transformed their business process seamlessly end-to-end, and made all steps of Karvi’s customer journey a reality.
In the first instance, the deployment systems were standardized to avoid manual processes, paving the way for a migration of the deployment technology. Afterwards, we worked in the core of the business, building a modular architecture and allowing flexibility to adapt to business changes. We went from a monolithic architecture to an architecture of services separated by domain.
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Main aspects of the solution
Automotive marketplace
We scaled up Karvi’s main web portal that centralizes used cars from different dealers to offer to potential clients. Working as a marketplace, it lets buyers and sellers connect to make and finish a deal.
Audit Tool
We built an Audit Tool to assess the mechanical condition of used cars, uploading details into the portal and connecting this database with 17 CRMs, managing the publications as leads.
Value precision
The improvements we made in the platform allowed dealers to know about the mechanical condition of cars, having a more accurate estimated value for resales.
Three different business models
Karvi works as a marketplace that manages car leads with three different business models:
· B2B: Audit Tool and web portal where dealers can see a car’s stock, condition, warranty, pictures, equipment, etc. This information is published in the web portal and replicated in external marketplaces.
· B2C: Used cars are audited to advise dealers and buyers about the mechanical condition of the vehicle (Certified Used Cars).
· C2B: Used cars of potential clients can participate in auctions among different dealers.
Results
The new robust platform we built with Karvi allowed them to raise a Series A venture capital investment of USD 16.6M, which allowed them to keep growing and made them leaders in the auto market in Latin America.
We developed different platforms specifically tailored to Karvi’s three different business models. These platforms helped them grow their offerings from 500 cars to more than 2,500 cars in four years, which represented an increase of 400% in car offerings.
We optimized the use of resources for the operation, analyzing all the resources acquired in AWS. An immediate saving of 20% was achieved and we put together a plan to continue improving the use of resources in different stages, with the objective of reducing the cost per application by approximately 30 to 40%. On this line, we made other improvements that allowed Karvi to lower their platform monitoring monthly costs from USD 4,500 to 500.
How this partnership impacted Karvi’s business
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