Honc: 100X.VC Investment Thesis




Introduction 


To say that the car wash industry is fragmented is an understatement. In a country like India, with the growing number of vehicles and an array of unorganized cleaners, Car owners have a tough time maintaining their cars clean. Hiring and managing an  independent cleaner amounts to an average Rs. 7000 per annum. A problem that looks inessential in the beginning, is a massive pain point for modern day car users and thus, comes with a $12 billion market opportunity. 


Honc, co-founded by Viraji, Niranjan and Rahul, is a doorstep car wash platform which provides verified and standardized services with the help of trained staff. All of this is integrated with end-to-end technology. At honc, Viraji works on building the product, whereas Niranjan takes care of technology and operations. Rahul looks after sales, bringing in a curated set of corporate and gated-community clients. The team, with their defined roles, have much to bring to the table with their extensive experience from their work in marketing, management and entrepreneurial journeys. 


At present, honc conducts third party background checks and has an intensive training for 2 weeks for the personnel recruited. honc is a doorstep solution which allows car-owners to book car cleaners, track their daily car cleaning progress by a click on the honc app which enables them to be a part of a transparent process. The team has taken an extra step by involving women wash partners in this male-dominated pool. 


Market Opportunity


There are approximately 26 Cr vehicles (2 and 4 wheelers) in India with a $12 Billion opportunity in the car wash space. This presents an untapped blue ocean opportunity for honc. 


60% of these vehicles are present in Urban India which is the primary target market for honc. Honc targets gated communities and business parks to capture the mindshare of the primary target market.


With their pre-paid subscription based revenue model, honc is targeting a cosmopolitan market with a dense and co-located demand. Their clients are looking for standard and organized services with a value for the price they are paying. Flooring their service with the above mentioned points, honc, today, has presence in over 60 gated communities with 3000 daily customers with a retention rate of 88%. 



100X.VC Thesis


We think that the team’s key strength is execution. They are successful with the proof of concept. It has a potential for being a large category creator in a very fragmented and unorganized market. With growing needs within the Auto segment post Covid, honc offers the complete value chain between customers and service partners. 100X believes that the founders will build out a scalable business.


Conclusion 


The space seems interesting with a definite gap to be filled. The honc team and their experience makes the execution of this idea a fairly exciting journey. We wish the team all the luck!


- 100X.VC Team

Published on: December 9, 2021