248 Talks with Babak Sanayei - Co-founder and CEO of Automotive Superstore

Automotive Superstore is one of Australia’s largest online retailers of automotive parts and accessories. Founded in 2013, the business has transformed the way Australians source car parts by bringing convenience, competitive pricing, and a vast product range to consumers via a digital marketplace.

With a strong focus on technology, customer service, and operational excellence, Automotive Superstore has carved out a leading position in a traditionally bricks-and-mortar industry. The business continues to scale rapidly as car ownership and aftermarket needs evolve.

Babak Sanayei, co-founder and CEO of Automotive Superstore, recently joined us to share the Automotive Superstore journey and insights on the industry and where he sees growth in the years to come.

‍Q: What inspired you to start Automotive Superstore, and when did you realise it had potential?

A: Around 2013, my co-founder (Jeff Fu) and I saw that the online automotive parts sector in Australia was poorly serviced. Big players like Supercheap and Repco were focused on their bricks-and-mortar stores, and their online offering was an afterthought. Recognising this, we decided to build a website and develop an online offering for the space. After a slow start, we started to figure out the formula: the right products, competitive pricing, good shipping, and digital advertising. As soon as orders scaled from one a day to 10, 20, and beyond, we knew it was time to commit fully.

Q: At what point did you decide to bring in external capital?

A: We always knew we’d need investment in the business from external sources at some point. Inventory, warehousing, and tech all require significant upfront investment and that’s really hard to fund yourself. In the early days, friends and family invested but we decided it was time to seek out professional investors when the business achieved meaningful scale, which was around 2020 when revenue hit ~$10 million. Around this level professional investors have confidence in the business, and the revenue justified the cheques required to growth the business to the next stage.

Q: What have been the biggest challenges in scaling the business?

A: Challenges shift as the business grows. Early on, the biggest challenge was getting people onto the site and making sales. Later, it became scaling operations - processing hundreds of thousands of orders, managing returns, and ensuring fulfilment accuracy. Unlike a purely digital business, you can’t just add servers — you need people, training, processes, and space. Balancing investment in operations without overspending or underdelivering has been critical.

Q: How has technology shaped your competitive edge?

A: Technology underpins everything we do. While we’re not a pure software company, we’ve built a competitive ecommerce platform on a fraction of the budget of incumbents. Our DNA is digital, which allows us to move quickly, iterate, and get strong returns on modest investment. That agility has let us compete effectively against much larger players.

Q: What is the scale of your operations today?

A: We ship roughly 250,000 orders annually, totalling around 750,000 individual parts — everything from spark plugs to wiper blades.

Q: What are some of the trends you see shaping the automotive aftermarket?

A: The Australian car market has become much more diverse. Twenty years ago, most cars were Commodores or Falcons; now we have imports from Europe, the US, and China, plus hybrids and EVs. That complexity makes it harder for bricks-and-mortar stores to stock everything their customers might need, but e-commerce businesses such as ours thrive with large catalogues and centralised warehousing. EV adoption remains modest, and hybrids actually create more parts demand. Overall, the market size remains enormous with 20+ million registered vehicles in Australia.

Q: How do you stay competitive against giants like Supercheap Auto?

A: Their model is built around physical stores which are expensive to run and increasingly less aligned with consumer behaviour. E-commerce’s share of sales is growing every year, and technology like AI will only accelerate this. For us, digital-first is a structural advantage.

Q: What milestones are you most proud of?

A: From a reputation and branding standpoint, sponsoring Supercars was a standout. Having our brand associated with one of Australia’s biggest sporting events was a huge achievement for us. On the operations side, building a platform that competes with incumbents on a lean budget is something we’re very proud of.

Q: How do you see AI influencing the business?

A: The Australian car market has become much more diverse. Twenty years ago, most cars were Commodores or Falcons; now we have imports from Europe, the US, and China, plus hybrids and EVs. That complexity makes it harder for bricks-and-mortar stores to stock everything their customers might need, but e-commerce businesses such as ours thrive with large catalogues and centralised warehousing. EV adoption remains modest, and hybrids actually create more parts demand. Overall, the market size remains enormous with 20+ million registered vehicles in Australia.

Q: What advice would you give to aspiring e-commerce founders?

A: Know your numbers. Get accounting and unit economics right from the start — mistakes compound in high-volume businesses. Don’t rush; focus on solid fundamentals. E-commerce isn’t “magic” — it’s just business principles applied online: acquiring customers, managing inventory, selling profitably. Do it properly, and growth will follow.

Q: How has partnering with a growth equity investor helped?

A: Tremendously! It’s easy as a founder to run things informally, but investors bring discipline — proper reporting, board packs, financial planning, and governance. That structure makes the business stronger and adds value if you ever seek further investment or an exit.

248 Growth Partners has partnered with Automotive Superstore since 2021. You can find out more about how we partner with founder-led, Australian growth companies by visiting our website, www.248partners.com, or by following us on LinkedIn. You can find out more about Automotive Superstore by visiting their website, www.automotivesuperstore.com.au.