Bengaluru-based Incredible Technologies Private Limited (CredR), has raised INR 48.1 Cr ($6.5 Mn), in its latest round led by Yamaha Motors. Its existing investors Omidyar Network India,Eight Roads Ventures, and Astarc Ventures also participated in the funding round.
Founded in 2015, CredR has been focused on formalising the unorganised and fragmented used two-wheeler market, with over 1,00,000 dealers, across India. It offers an omnichannel experience for buying and selling used two-wheelers.
Founded in 2014 by Nikhil Jain, Nittin Mittal and Sumit Chhazed, CredR is a marketplace for second-hand bikes and scooters. The company focuses on creating a niche solution in the used bikes segment, which is highly unorganised and fragmented, through a mix of offline and online approach.
Even though India’s used two-wheeler market accounts for over 30 Mn annualised units, challenges around standardisation of pricing, strong quality inspection and customer experience, and most notably post-sales support, persist. CredR works towards solving these issues through its full-stack vertically-integrated business model empowered with technology.
The company has showrooms situated in major cities like Pune, Bengaluru, Delhi NCR, Jaipur, Bhilwara, Sikar, and Chittorgarh.
Elaborating on CredR’s fundraise, Sasidhar Nandigam, cofounder of CredR said, “We are excited to partner with Yamaha Motors in our journey to build India’s first used two-wheeler consumer brand. Yamaha Motors’ comprehensive understanding and experience in the two-wheeler mobility segment aligns with our first-to-market business model. The pandemic has catalysed the already existing demand for affordable private mobility in India, and these funds will allow us to scale rapidly and fulfil this demand.”
While the two wheeler market in India has always been incredibly large, the onset of the Covid19 pandemic brought in a shift in consumer behavior which further accelerated the growth of the two wheeler and mobility market.
Commenting on this investment, Hajime Aota, senior general manager of New Venture Business Development & R&D Strategy Section, Technical Research & Development Center of Yamaha said, “India is one of the biggest mobility markets in the world and the personal freedom that motorcycles and scooters bring, is a huge and lasting benefit for this country’s people, regardless of whether they are new or used. CredR’s clear vision behind its thriving used two-wheeler business resonated with us, and we decided to invest in the company to help their business scale bigger, which will subsequently lead to a higher quality of life for India’s people.”
Covid-19 turned the world upside down, bringing businesses to a halt, affecting revenues and triggering layoffs across sectors. Due to lockdowns and lower income levels, sale of first-hand automobiles was down significantly, but it didn’t affect the growth of pre-owned vehicles in the country. Pre-owned vehicle segment accounted for 18% of the market share, registering estimated sales of 4.4 Mn units in FY2020, according to SIAM. Additionally, India’s used car market is estimated to reach between 6.7 Mn units and 7.2 Mn units per year by 2022, according to an outlook report by Mahindra First Choice Wheels Ltd.