The round also saw participation from existing investors Stellaris Venture Partners and Chiratae Ventures, which had led the company’s $3 million seed round in September 2021.
Beepkart said that the money will be used to scale up the business, customer experience, internal products and systems, as well as branding and operations.
Over the course of the Covid pandemic, the used-car market grew significantly, leading to the emergence of multiple unicorns such as Cars24, Cartrade, and Cardekho, as tech companies solved multiple customer pain points such as pricing, quality checks and assurance in the largely unorganised market. The entry price of new vehicles also increased as car makers were shifting to newer pollution standards such as BS6.
According to a study by Frost and Sullivan, the used-car market will be twice as big as the new car segment by FY25
However, the used two-wheeler market does not have many big tech companies, and Beepkart sees a big opportunity in the space. The company says that while there are 3.5 crore cars on the road, the number of two-wheelers is estimated to be far higher at 24 crore.
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A large part of the population does not have access to personal mobility options or has to spend excessively on increasingly costly new vehicles. Used 2-wheelers are therefore the best entry point into personal mobility, the company claims.
Beepkart said it offers users a transparent experience by offering a fixed price to sellers and buyers through data crunching. Buyers can browse refurbished bikes, access bike inspection reports, make online reservations, get at-home test rides and purchase bikes with full payment or on loan with warranties and services.
“A combination of an internal and external product-led strategy, operational excellence across the stack of activities, and the right value system can help transform the used 2-wheeler market, which is far more unorganised than the used-car market,” said Hemir Doshi, cofounder & CEO, Beepkart. “The BeepKart team has patiently built out its playbook in Bengaluru, is profitable at a city level, and is ready to gradually replicate elsewhere while continuing to learn,” he said.
The company competes with the likes of Bikewale, Credr and Droom, among others. Recently, used two-wheeler finance company Bike Bazaar, which also runs an online marketplace, raised Rs 170 crore in a round led by Women’s World Banking Asset Management.
“Two-wheelers are more than just a personal commuting solution as millions of Indian families depend on them for their livelihood,” said Piyush Kharbanda, general partner, Vertex Ventures Southeast Asia and India “The used two-wheeler market, which by all accounts should be a thriving, well-orchestrated market, is plagued by issues that make it a classic market for lemons (vehicles that appear fine but are defective).”
