Mumbai-based pre-owned bike and scooter marketplace CredR has raised Rs 14.7 crore in its latest funding round from Eight Roads and ON Mauritius, according to a report by Inc42. Both these companies have invested Rs 7.35 crore each into CredR.
This is not the first time, Eight Roads has invested in CredR. In 2015, CredR received Rs 109 crore investment in its Series A funding round from Eight Roads.
CredR has allotted 20,083 Series A5 Compulsorily Convertible Preference Shares (CCPS), at a face value of Rs 10 per share and a premium amount of Rs 3,650 per share, to Eight Roads Investments Mauritius II Limited, amounting to a total value of Rs 7.35 Cr. According to filings with the Ministry of Corporate Affairs (MCA), the same number of shares have been allotted to ON Mauritius as well, another investor for the company.
CredR’s last funding round was a debt financing round by Stride Ventures in April 2020. Besides that, in December 2019, it received Rs 38 crore led by Omidyar Network. Its existing investors include companies like Eight Roads Ventures, GrowthStory, AngelList etc.
What is CredR
CredR was founded in 2014 by Nikhil Jain, Nitin Mittal and Sumit Chhazed. It is a marketplace for the second-hand bikes and scooters, focusing on creating a niche solution in the used bikes segment, which is majorly unorganised and fragmented.
CredR has a network of more than 50 franchisee showrooms. It also provides an organised platform to over 10,000 automotive Original Equipment Manufacturer (OEM) stores and used motorcycles dealers.
The company presently offers its service across 7 cities.
CredR business model
The customers who are planning to buy used bikes or scooters from CredR, can either select them on the company’s website and then complete the transaction by purchasing them from the company’s nearest showroom. Otherwise, they can walk into these showrooms and buy the vehicles without using the website.
Pre-owned bike market in India
The pre-owned two-wheeler market in India is growing rapidly. Especially, in the Covid scenario, demand for personal mobility has increased exponentially. With affordable pricing, the pre-owned two-wheelers appear a luring segment for the consumers. However, the segment face problems like unorganised sales platforms, poor customer experience, lack of quality checking, lack of standard pricing, lack of aftersales service facility.
All of these have created a trust deficit among the customers. However, with the rise of the players like Droom, BikeDekho, Olx etc who offer aftersales service facility, easy financing options etc have been able to boost the sales of the used two-wheelers.
As per a report by Statista, bike sales in India reached an all-time high in 2019, registering around 21 million units, which is nearly double from 2011, when 11.77 million bikes were sold across India.