BeepKart raises $3 mn in seed round led by Stellaris VP, Chiratae Ventures

Topics fundings | online retail

BeepKart, a full-stack online retailer of used 2-wheelers, has raised $3 million in seed round led by Stellaris Venture Partners and Chiratae Ventures. The round also saw participation from angel investors including tech founders like Varun Alagh (Mamaearth), Sahil Barua (Delhivery), Vivekananda Hallekere (Bounce), Kunal Shah (CRED), Ramakant Sharma (Livspace) and Rajesh Yabaji (Blackbuck).

Founded by Hemir Doshi and Abhishek Saraf, BeepKart is taking a tech-first approach to address the trust deficit in the massive used 2-wheelermarket. BeepKart aims to bridge the wide gap in experience between buying and owning new and used 2- wheelers. Unlike classifieds platforms, vertical-focused BeepKart provides used 2-wheeler buyers the required confidence on price, quality and after-sales service.

According to Google’s Auto Gear Shift India 2020 report, 90% of new 2-wheeler buyers go online from initial research to final purchase. This behavior is seen across price points and in metros and towns. On BeepKart’s platform buyers can conveniently browse, select and book their preferred used 2-wheeler
right from their mobile phones.

Hemir Doshi, Co-founder & CEO, BeepKart said, “2-wheelers form over 80% of India’s vehicle base, and there are seven times as many used 2-wheelers 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, 2-wheelers are more amenable to online sales than cars and the decision to buy and sell is made more quickly."

The business is currently live in Bengaluru, and will expand to 3 more locations over the next 12 months.

Ritesh Banglani, Partner at Stellaris Venture Partners said “Used vehicles represent one of the largest retail categories globally with virtually no online penetration in used 2-wheelers in India. Globally, very large companies have been built selling used cars online. I believe the largest vehicle commerce companies in India will sell bikes and scooters, not cars.”

TC Meenakshisundaram, Founder & Managing Director, Chiratae Ventures said, “This decade will see such opportunities in 2-wheeler related e-commerce. For most Indians, 2-wheelers are the entry point into personal mobility. The pandemic has further increased the desire of millions of Indians to own their personal vehicle. At the same time, new 2-wheelers are becoming very expensive and out of reach for many. We believe BeepKart can help fulfill these aspirations by providing reliable and value for money used 2-wheelers, and become the market-leading digital brand in this space.”

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