carVertical doubles revenue in 2021 – what does the future hold?
2021 has been a tumultuous year for carVertical. The company has had to adapt to the effects of a pandemic-caused supply chain meltdown, which is likely to stretch well into the future. Despite this challenge, we’ve managed to grow exponentially, and continue to do so even in the face of a new uncertainty – Russia’s attack on Ukraine.
Our revenue has doubled in comparison to 2020, when we produced €8.5 million in sales. As a result of an aggressive marketing strategy, we have achieved revenue figures of €17.7 million for 2021, despite adding only a couple of new markets.
In light of this success, 2022 is projected as a year of expansion for carVertical – with the help of our awesome team (which has more than doubled since last year), we will tackle exciting new markets, bringing transparency for used car buyers everywhere.
The supply chain crisis and carVertical
Because of the global semiconductor crisis, the supply of used cars in some markets has dropped by 40%. Simply put, manufacturers are delaying deliveries of new cars to customers, as a result of which these vehicles fail to appear on the second-hand market as used cars.
Since we’re providing drivers with car history reports, we’ve directly felt the consequences of this crisis. However, this hasn’t stopped us from reaching our financial goals.
So how did we do it?
Despite considerations to counteract the fall in demand by expanding to new markets, our revenue growth has largely been a result of strengthening positions in Central and Eastern Europe, as well as American markets. We’ve heavily invested in data, providing users with better services and enhancing their experience, while implementing various aggressive marketing strategies in targeted countries. In 2021, we only added two new markets to our portfolio: Denmark and the UK.
Even our number of employees has seen a spike from 36 at the beginning of 2021 to 76 right now. To some, this may seem like a low number, considering the revenue figures. In reality, this has made carVertical particularly resilient under testing circumstances: we “hire slow”, targeting experienced specialists who opt to join long-term. The result is a small, but highly-adaptable team who is invested in our future.
Expansion to other markets planned for 2022
The ongoing supply chain meltdown isn’t the only crisis impacting automotive businesses. The war in Ukraine has not only shaken everyone but has also greatly affected markets in Central and Eastern Europe. When the war broke out, we immediately terminated our operations in Russia and Belarus. carVertical has also been providing financial support for Ukraine and we join everyone in the hope that the war will soon end.
Regardless, we expect to grow the company’s revenue to €25 million in 2022, partly by unlocking new markets. We’ve already started offering our services in Australia, Spain, and Mexico. In addition, South Africa, the Netherlands, Portugal, Brazil, Sakartvelo, UAE, Canada, and Puerto Rico are among the countries where we hope to establish our presence in the future.
This plan comes with its challenges: before offering car reports in a certain country, we need to get the data first. As soon as our product and data teams give the green light, we can start investing in marketing to reach our potential customers and educate them about the importance of a car history check.
Moreover, since the beginning of operations, carVertical has been oriented towards cars – something that will change in the near future with a step into the motorcycle market.
This move has long been in the making. We’re constantly receiving inquiries from moto enthusiasts, to the point where it’s become obvious we should take this opportunity. Even now, before buying a motorcycle, people can check its history on carVertical. Our capabilities in this area will continue growing throughout 2022.
Vision for a carVertical future beyond 2022
carVertical has already received attention from venture capital funds, eager to invest in our company. At this stage of development, however, we plan to grow our products organically.
Throughout last year, we learned a lot about our clients, their needs, habits, and uncertainties they have. It has been an eye-opening experience, providing a long-term vision for our business. We want to become an ecosystem, which reaches far beyond the car history check. In short, we have very exciting plans for the future.
Expanding carVertical’s portfolio is a complex process that will need external investments in the long run. As for now, we’ll continue to develop our services and unlock new markets.