🚗You Won’t Believe How This Indian Startup Is Changing the Game with Fractional Luxury Car Ownership(Issue 010)

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In today’s Issue 📥 :

• Prorata Car is paving the way for fractional luxury car ownership in India.

• Thanks to Biplab Roy.

• Rare Aubrite Meteorite Crashes in Gujarat.

Prorata Car is paving the way for fractional luxury car ownership in India.

“Want to Drive a Lamborghini on a Honda Budget? Prorata’s Fractional Ownership Model Has Got You Covered!”

The business has set a maximum ownership of 25% and requires at least four customers to acquire one car. As a result, users can save the dates on the Prorata app for future use.

In essence, the startup collects money from each interested customer and deposits it into an escrow account. The funds are paid straight into the account of the car dealer, who subsequently releases the vehicle to the users.

According to the cofounders, the startup’s target market is those who currently own a primary four-wheeler or a few cars and want to upgrade to a more expensive dream car.

The Grinding: The early-stage startup is presently concentrating on educating its target demographic, with the goal of deploying and selling the first batch of 30 automobiles by March or April.

Prorata Car plans to generate income from annual maintenance costs as its sole source of revenue. The startup will charge users between INR 20,000 and INR 1 Lakh per year, depending on the car’s price, which will cover service, maintenance, and insurance expenses.

In answer to Inc42’s inquiries about whether the platform requires significant capital investment, Prorata’s CEO stated that the company runs on an asset-light model, which essentially implies that it does not own any assets. Jain, who refers to Prorata as an asset management firm, claims that the car sold on the marketplace is registered under an LLP and does not imply any expenditure obligation for the startup.

Revisiting the marketing strategy: Prorata Car ran an offline pilot by reaching out to residential societies in Bengaluru, offering groups of co-residents the opportunity to purchase a car. The initial phase was not a success due to the lack of trust in the new concept and the absence of such a fractional car ownership model in the market.

It was most likely time to reconsider the marketing plan. So, with chalk in hand and a chalkboard in front of them, the cofounders spent weeks developing playbooks to decode their potential market and reveal the true user base.

“We realized that we first need to build trust and that could be achieved by building a community around the idea of fractional ownership. While Phase-I was not overtly successful, we realized that we need to educate users and then sell our product. We found out that we need to develop the market so users can download the app and interact within the community. From there, we can easily scale up,” said the chief marketing officer Sakshi Bansal, who joined the startup as a cofounder in June 2022.

Don’t ignore the virality of Instagram→

“The results have been great since then. Our platform’s Instagram handle has gone viral in the past three months,” the cofounder said, adding that the app has notched up 1 Lakh+ downloads and lapped up more than 16 Mn impressions on various video-sharing platforms since December 2022.

Confronting Uncomfortable Truths: The fractional car co-ownership model is still in its infancy in India and could face unforeseen challenges, but the Prorata Car founders are already anticipating potential setbacks. The startup plans to hire asset managers to tackle situations such as a partner leaving the co-ownership group. Prorata will help the exiting partner find a replacement from the community of car enthusiasts on the app.

“Why Fit In When You Can Stand Out? Embrace the Advantages of Niche Marketing and Set Your Business Apart from the Crowd!”

The luxury car market in India may be smaller compared to the total auto sales, but it is growing rapidly and is projected to reach $1.54 billion by 2027. Prorata sees a big opportunity in this market, offering a range of cars from family to luxury SUVs.

While other platforms have previously attempted a similar co-ownership concept, Prorata aims to offer an affordable solution to own a dream vehicle. Despite challenges, the startup holds potential due to the country’s maturing economy and increased disposable income.

HOT SIP

Rare Aubrite Meteorite Crashes in Gujarat – India’s Second-Ever Sighting in Over 170 Years!

Last year…

On August 17, last year, a woman in Ravel village, Gujarat, was cleaning her porch when a chunk of rock fell next to her. It shattered her porch tiles and left a small crater. Not far away, people in Rantila saw a similar piece of rock collide with a neem tree branch and break into pieces.

A team of researchers from the Physical Research Laboratory (PRL) in Ahmedabad discovered that the rock, which released a strong odour upon impact, was a unique type of meteorite that had only been sighted in India once before – 170 years ago.

The fragments of the meteorite contained a mineral called enstatite, which has similar characteristics to the surface of Mercury. The study was published in the journal Current Science.

“This rare specimen of meteorite not only improves the existing meteoritic database but will be important for understanding the planetary processes in future,” wrote the researchers.

Get to Know Aubrites: The Extraterrestrial Rock Stars That Are Out of This World!

Aubrites are achondritic (or achondrite) stony meteorites, which means they lack chondrules or microscopic spherical mineral grains seen in other forms of meteorites. The Aubres meteorite, which fell in France in 1836 and was the first known occurrence of this type of meteorite, inspired their names.

While the Indian subcontinent has an unusual record of meteorite falls, this is only the second recorded aubrite to fall in India, following the Bustee fall in Gorakhpur, Uttar Pradesh in 1852.

According to the experts, aubrites evolved from an incredibly reduced differentiated parent body in our solar system.

SMALL SIPS

Not returning: Prabhu, an Indian Army soldier, was murdered in Tamil Nadu by a DMK councilor and his aides. His army brother, Prabhakar, sought justice and stated that he would not return to the Force until the murders were brought to justice.

Proud Daughter: Nikki Haley, a Republican leader of Indian descent, officially announced her run for the presidency of the United States in 2024 on February 15. She ran for office under Donald Trump, who was also her former boss, and she advocated for a strong and proud America. She calls herself a ‘proud daughter of Indian immigrants’.

Escape Plan: A Flaco, a Eurasian eagle owl, managed to escape from a Manhattan penitentiary on February 3. The identity of his fellow vandal who tore through the netting of his enclosure is unknown to investigators, and they are still looking for witnesses.

7000 Hats: ‘Miss Patty’ Has Made 7,000 Hats for the Students that Ride Her Bus. “I’m going to do it until I can’t do it anymore,” she said.

Swara Bhaskar marries: Actress Swara Bhasker confirmed her wedding to political activist Fahad Ahmad on Twitter. The actress detailed their love story in a film that featured a collage of all their wonderful moments. The actress from Veere Di Wedding revealed that the couple had legally wed on January 6, 2023, according to the Special Marriage Act.

With CHAI ☕

Ceo: Twitter To Get New CEO By Year-End? What Elon Musk Said.

How to: work with Your Unionizing Employees.

Aww: Ever watched a baby glider?

It’s Interesting: The first college football game was played on November 6, 1869, between Rutgers and Princeton (then known as the College of New Jersey) in New Brunswick, New Jersey. Rutgers won. (ncaa.com)

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