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.
“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,” said Hemir Doshi, co-founder & CEO, BeepKart.
Automobiles account for over 7 per cent 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 the lives of millions of Indians.
Globally, digitization has helped transform the used car industry and created immense value. Used car sales are over 3 times 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.
Ritesh Banglani, Partner, Stellaris Venture Partners said:, “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.”
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 solving 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.
“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,” said Piyush Kharbanda, General Partner, Vertex Ventures Southeast Asia and India. “We are excited to back Hemir and Abhishek in their endeavour to build a brand that solves 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,” he added.
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 a 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.
TC Meenakshi Sundaram, Vice Chairman, Chiratae Ventures said: “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 trustworthy 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 channelled towards building the digital user journey further to earn customer love, internal products and systems that serve as competitive moats, and brand and operational excellence while scaling the business geographically.