Founded in 2015, boodmo.com is India’s largest online marketplace for auto components buyers and sellers. It is the brainchild of two Ukrainian entrepreneurs: Oleksandr Danylenko, Co-founder and Director of Operations and Finance, and Yevgen Sokolnikov, CEO and Co-Founder. Since January 2017, the company has been offering genuine and aftermarket replacement parts of over 3000 national and international brands from about 400 suppliers.
“As the Indian auto spare parts market grows, I would like to see a substantial portion of this growth going to Boodmo and the online auto components market. We are aiming to be the number one online destination for auto spare parts in India,” Oleksandr Danylenko told AutoParts Asia.
Boodmo platform offers a trusted channel for both car owners and auto parts dealers. Customers can make their search through VIN, brand or part number to find the required automotive components using the online catalogue.
Unlike the traditional e-commerce players like Amazon, Flipkart and Alibaba, Boodmo is focused only on spare parts and has developed an Online Spare Parts Catalogue. The catalogue is a vast database with a comprehensive list of spare parts available in the market. It enables buyers and sellers to identify the exact parts and their corresponding part number by surfing through the vehicle manufacturer’s parts. This helps them in short-listing the exact product that would fit their vehicle.
“With our aim to be ‘Your Spare Parts Expert’, we strive to become a pioneer in the automotive parts industry. Being an unorganised sector in the country, sometimes it becomes very difficult for the car owners to find replacement parts. Our expert team is dedicated to redefining the Indian spare parts industry. Customers can find the exact parts with transparent pricing and on-time delivery, surely a win-win situation for all concerned,” Oleksandr Danylenko said.
Boodmo was started with an initial investment of Rs 10 crore. Thereafter, it received Rs 5 crore in December 2017 through Foreign Direct Investment (FDI). In July 2018, it got additional Rs 5 crore from the same channel. With these fresh funds, the company plans to strengthen the existing operations and to expand.
“We will definitely require more infusion in future. Current investors are going to provide support in future as well. We plan to set up at least 10 sorting hubs in several regions in the next three years, to decentralise the product quality check process and speed up delivery by connecting buyers and sellers in their own region,” he said.
The performance review of Automotive Component Manufacturers Association of India (ACMA) for 2016-17, values India’s auto component Industry at $43.5 billion, contributing approximately 2.3 percent to the Indian GDP. The Global Auto Parts & Accessories Manufacturing is valued at $2 trillion in 2018 by IBIS World.
The double digit growth that the Indian automotive market is witnessing bodes well for the aftermarket. Unlike the mature and organised overseas auto aftermarkets segment, the market in India is dominated by traditional and unorganised businesses. The consumers of automobile spare parts in India are in a maturing phase and they are apprehensive about buying spare parts online.
“While India contributes marginally to international auto-spares industry, it continues to grow at a double digit growth rate, showing signs of attaining maturity. We have ventured into this space in India, so as to utilise our experience in this domain and bring value to the online aftermarket space in the country. We are guided by the vision to make this industry more organised, in line with international standards, so that people could find the best-suited automobile parts with just a few clicks of the mouse. The e-commerce of auto spare parts makes the market more organised, transparent, competitive and brings the best international practices of e-commerce to the customer. It has helped in ending the hegemony of local stores, who would use the information they possessed and mould it as per their advantages. Online auto-spares marketplace has ended this hegemony and offered customers an alternate credible platform to seek products as well as information on products. Online portal offers the maximum speed and accuracy in transforming the customer’s intention to buy spare parts to placing and paying for the order,” Oleksandr Danylenko said.
However, the online marketplace for auto spare parts is still in the nascent stage in India. Main sources of supply are still located in unorganised bazaars where clients, while deciding what and where to buy, rely more on their gut feelings than on information provided.
“Online market is a new channel which makes the whole market more dynamic and transparent for all the stakeholders. Before any sales, a lot of information must be shared for identification of proper product and supplier. We want to organise and standardise the Indian automobile spare parts market by providing instantly crucial information required for making a decision about what to buy. Internet channel can facilitate the transaction cycle by eliminating phone conversations with its possible problems of connectivity, voice quality and misunderstanding between customers and vendors. It means that this channel will be widely used by all participants on all markets –from wholesalers to retail shops. But smaller players will be given a chance without significant marketing expenses to reach the same customer base due to marketplaces like Boodmo. We estimate that online marketplace will take up to 3-5 percent of the total market in next five years,” Danylenko said.
The spare parts industry is more than 100 years old, and the internal combustion engine is dominating the automotive industry not only in India but across the globe.
“The shift towards electric vehicles is not even close in India. The main change in construction is in engine and powertrain, filters and oil seals. But the other most popular parts will stay leaders in sales with any type of drive – shock absorbers, brake pads, body parts etc. Besides, we are also witnessing a wider usage of internet channel in distribution of spare parts. OEM distributors are using internet for information exchange with manufacturer and the next step of new communication with customer is on the verge,” Oleksandr pointed out.
Currently, the company is not dealing in used or refurbished parts. “But it is not uncommon for manufacturers to restore some expensive parts (generators, turbines etc.) and sell them in the market, but those parts are marked and priced as restored or refurbished,” the Boodmo founder said.