Introducing the second interview in the Founder Series by Luminar Ventures—a new initiative spotlighting the journeys, challenges, and insights of exceptional Nordic entrepreneurs in the Luminar Portfolio. In this edition, we sit down with Patrik Illerstig, CEO and Co-founder of Carla, to explore his path from industry frustration to building one of the region’s most innovative electric vehicle retailers. Patrik shares candid reflections on early pivots, operational hurdles, and the enduring value of founder-investor partnerships, offering a rare inside look at what it takes to build and scale in the Nordics today.
What motivated you to leave your senior role in the car industry and start Carla?
I wasn’t suited for big companies and tried to resign for years. I found it peculiar that people pay so much money for cars and, on average, are not that happy. The beginning of electrification was also exciting. Previously, I worked in consumer lending, which I found unrewarding from a values perspective. Electric cars felt more meaningful—I could tell my kids I was doing something positive. Lastly, I saw how much the industry needed to change and how long it would take. That was a huge motivation to start something new.
What was your biggest initial advantage as a founder?
Our unfair advantage was being two founders with lots of experience and credibility in our network. That’s something outsiders might underestimate.
What was the main challenge in your early investor meetings?
We started with a price comparison site for EVs, but quickly realized it wouldn’t work in Sweden due to lack of merchant competition. Investors liked us but didn’t understand our pitch, and honestly, we weren’t sure ourselves at first.
How did your relationship with Luminar Ventures develop?
I can’t recall how we got the introduction, but it was during the pandemic. We met the partners at Luminar who listened a lot, asked questions, and engaged with the team and the underlying problem—customers not loving the car-buying experience. Our solution was a tad bit confusing for everyone at first, but Luminar was supportive, providing mental support and sharing insights from the sidelines. They invested early, even before we launched, and remained supportive as we pivoted. When we realized our initial idea wouldn’t work, we offered to return investors’ money, but everyone stayed. Luminar, in particular, was pragmatic and supportive, encouraging us to find a new direction. As we grew, they always stayed supportive, and it evolved into a personal relationship.
Why did you focus only on EVs and plug-in hybrids?
We wanted to “skate to where the puck is going.” Five years ago, everyone thought all cars would be electric soon. It was also a values-driven choice—we wanted to be proud of our work. Focusing on a niche made it easier to build a brand and acquire customers.
How did you manage 72-hour nationwide delivery?
We combined “intelligent naivete” with relentless execution. Not knowing how hard it would be actually helped us keep improving and solving problems as we grew.
What were the hardest operational tradeoffs?
Money was the enabler. Investors initially wanted us to focus on volume, but we have gradually focused a lot on margins, which has let us continue to invest in which let us invest in people and infrastructure. Our model is complex, but we tackled challenges step by step.
Why offer free returns on cars?
It’s required by law for online purchases, but we also believed people wouldn’t return cars lightly. Free returns build trust and help conversion, and positive return experiences generate word-of-mouth.
How do you see Carla’s role in the secondary market?
The market is huge and fragmented. We stand out by offering a great experience, but we’re not trying to change the industry—we just want to be the best for our customers.
What’s your focus for the near future?
Our main goal is profitability and maintaining high customer satisfaction. We want to achieve our first profitable month before thinking about long-term strategy.
How important is flexibility for a founder?
If you’re not flexible, you won’t survive. You need structure but also the ability to adapt as solutions change.
How have you handled team structure as you’ve scaled?
We moved from rather abstract goals to detailed, shared plans, and learned to hire leaders who are humble, detail-oriented, and collaborative. Cross-functional teams and confident leaders have been key.
What have you learned from working with your co-founder Niklas Jungegård?
My co-founder’s confidence and humility have been crucial. Also, we have made a very clear division of our responsibilities, based on our respective strengths and weaknesses. His commercial skills have also been vital.
What does success look like for Carla in 5–10 years?
We want to be the biggest car retailer in the Nordics, have the happiest customers, and the most profitable business model.
Stay tuned for more inspiring stories from visionary founders within the Luminar Ventures portfolio, published regularly as part of The Founder Series.