Online Vehicle Retailer BeepKart Bags $9 Mn In Series A
The round also witnessed participation from existing investors Stellaris Venture Partners and Chiratae Ventures
BeepKart, a full-stack online platform of used 2-wheelers, announced that it has raised $9 million in its Series A round led by Vertex Ventures South East Asia & India. The round also witnessed participation from existing investors Stellaris Venture Partners and Chiratae Ventures who had led the $3 million seed round of the company in September, 2021.
Automobiles account for over 7% of India’s GDP. There are 3.5 crore cars on the roads and an estimated 24 crore 2-wheelers. Massive portions of the population don't have access to personal mobility or have to spend excessively on ever-increasingly costly new vehicles. Used 2-wheelers can offer the best entry point into personal mobility and help upgrade lives for millions of Indians.
Globally, digitization has helped transform the used car industry, and created immense value. Used car sales are over 3x of new car sales in some developed markets. In India, used 2-wheeler adoption can grow similarly while being a great beneficiary of the digital revolution.
The $10 billion used 2-wheeler market is plagued with a lack of trust, convenience and value for money. Since 2021, BeepKart, founded by Hemir Doshi and Abhishek Saraf, is taking a digital-first approach to solve this. It offers a transparent and increasingly product-led journey to sellers and buyers. Using data and intelligence, it is able to provide a haggle-free fixed price experience to sellers and buyers. Buyers can conveniently browse hundreds of refurbished BeepKart bikes, access reliable images and bike inspection reports, make online reservations, get at-home test rides and purchase bikes with full payment or on loan and have a hassle-free ownership experience with 1-year warranty and 3 free-services.
A full-stack model has allowed BeepKart bikes to become a compelling alternative for thousands of buyers who could very well afford a new 2-wheeler. BeepKart is able to solve customer pain-points comprehensively in this high-value and high-consideration category, while ensuring healthy margins.
Hemir Doshi, co-founder & CEO, BeepKart said, “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 unorganized than the used-car market. 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. In essence, we are challenging the need to buy an expensive new 2-wheeler when a BeepKart bike is available to upgrade the consumer’s life.”
Piyush Kharbanda, General Partner, Vertex Ventures Southeast Asia and India said, “India is the 2-wheeler capital of the world. A 2-wheeler is more than just a personal commute solution as millions of Indian families depend on them for their livelihood. The used 2-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. We are excited to back Hemir and Abhishek in their endeavor to build a brand that solves for all issues that impact trust among buyers and sellers: price transparency, service delivery, product warranty, and many others. It takes a lot to deliver this, and the team’s razor-sharp focus on operating excellence is what sets BeepKart apart.”
Ritesh Banglani, Partner, Stellaris Venture Partners added, “Since our initial investment in BeepKart, the company has demonstrated strong momentum in both business volume and economics. Their offerings of online booking and home test drives are seeing strong customer traction. We continue to be huge believers in BeepKart's trust-focused offering and are delighted to back the company in their Series A round.”
TC Meenakshi Sundaram, Vice Chairman, Chiratae Ventures further added, “Within less than a year of operations, BeepKart has emerged as a leader in its operating market of Bangalore. The team has been working extensively on developing their playbook that will drive the scaling of operations to multiple new cities in the future. What excites us is the focus on building a trust-worthy platform for used 2-wheeler buyers which gets reflected in BeepKart’s amazing customer ‘Net Promoter Scores’. We are glad to have backed the company again in their latest Series A round.”
The fresh round of funds raised by BeepKart will be channeled towards building the digital user journey further to earn customer love, internal products and systems that serve as competitive moats, brand and operational excellence while scaling the business geographically.
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