Bengaluru-based BeepKart, a marketplace for used 2-wheelers (2W), has raised $3 Mn in a seed round led by Stellaris Venture Partners and Chiratae Ventures. The round also saw participation from angel investors including Mamaearth’s Varun Alagh, Delhivery’s Sahil Barua, Bounce’ Vivekananda Hallekere, CRED’s Kunal Shah, Livspace’ Ramakant Sharma and Blackbuck’s Rajesh Yabaji among others.
The funds raised will be used to 3 locations, apart from Bengaluru, over the next 12 months. The startup also plans to build an engineering team, while building a network of partners to help buyers with complimentary services such as reliable spare parts, services, accessories, loans and insurance.
Founded by Hemir Doshi and Abhishek Saraf in 2021, BeepKart aims to address the trust deficit in the massive used 2W market, by bridging the gap between buying and owning new and used 2W. “Unlike classifieds platforms, vertical-focused BeepKart provides used 2W buyers the required confidence on price, quality and after-sales service,” the startup said in a statement.
The pandemic has brought in a consumer behaviour change where the demand for 2W has significantly increased in an already large market. As per Google’s Auto Gear Shift India 2020 report, 90% of new 2W buyers go online from initial research to final purchase. This behaviour is seen across price points and in metros and towns.
Doshi, who has also worked with Chiratae Ventures for 6 years before turning into an entrepreneur, states, “2W form over 80% of India’s vehicle base, and there are 7 times as many used 2W sold every year as used cars. Buying a scooter or motorcycle is one of the key purchase decisions by the Indian consumer, yet the market suffers from a lack of rules and a great trust deficit.”
“In our view, 2W are more amenable to online sales than cars and the decision to buy and sell is made more quickly. We are seeing good early traction for our buyer-focused online brand and offering,” he added.
The used 2W marketplace is currently dominated by startups such IPO-bound Droom, Yamaha-backed CredR who recently raised $6.5 Mn, BikeDekho, Olx and Bike4Sale, among others.
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