SUMMARY
The funding round also saw participation from existing investors Stellaris Venture Partners and Chiratae Ventures
BeepKart’s board passed a special resolution to issue 62,043 Series A CCPS at an issue price in the INR 11,169.62-INR 12,330.10 price range
BeepKart had last raised $3 Mn in funding from Stellaris Venture and Chiratae Ventures in September last year
Used two-wheeler marketplace BeepKart has raised $9 Mn (INR 74.55 Cr) in a strategic funding round led by Vertex Ventures.
The round also saw participation from existing investors Stellaris Venture Partners and Chiratae Ventures, according to the startup’s regulatory filings.
BeepKart will use the funding to implement its ‘business plan’.
The startup’s board of directors on October 4 passed a special resolution to issue 62,043 Series A compulsory convertible preference shares (CCPS) at an issue price in the INR 11,169.62-INR 12,330.10 price range.
A breakdown of the data revealed that Vertex Ventures picked up 31,021 shares for an amount of $4.5 Mn (INR 37.27 Cr) via its SEA (South-East Asia) Fund. On similar lines, Stellaris Venture, through its India Trust II fund, picked up 15,511 shares for a cumulative total of $2.25 Mn (INR 18.63 Cr). Chiratae Ventures invested in the startup via its entity Vistra ITCL, bagging a total of 15,511 shares for a sum of $2.25 Mn.
With this, the total promoters’ holding in the startup now stands at 40.29% from the previous year 54.59%. The development was first reported by Entrackr.
Founded in 2021 by Hemir Doshi and Abhishek Saraf, BeepKart operates a full-stack platform for users to buy and sell their used two-wheelers online. The startup operates in the highly unorganised used two-wheeler market and offers all services such as documentation and inspection under one roof.
BeepKart also provides other services such as spare parts, accessories, loans, and insurance for used bikes through its network partners.
The startup had last raised a funding of $3 Mn in September 2021 from marquee names such as Stellaris Venture, Chiratae Ventures, and other angel investors such as Mamaearth’s Varun Alagh, Delhivery’s Sahil Barua, among others.
BeepKart is currently operational only in Bengaluru. The startup had previously also underlined plans to expand to three new geographies, but has so far not scaled up its operations outside the startup hub.
India’s used bike market largely operates on goodwill through individual sellers, local mechanics and small dealerships. BeepKart competes with players such as CredR, Droom, OLX and Bike Bazaar in the highly fragmented and unorganised space.
Subsidiaries of used car marketplaces such as Droom, OLX and CarDekho (via BikeDekho) have largely been the dominant players in the used two-wheeler market space, with startups such as CredR and Bike Bazaar also foraying into the space. The industry has also been witnessing experiments from two-wheeler manufacturers itself through offerings such as Honda Best Deal and Mahindra First Choice Wheels.
Last month, another online two-wheeler marketplace Bike Bazaar raised $52.8 Mn in Series D funding round in a mix of equity and debt.
The development was first reported by Entrackr.
Update | 18th October, 19:10 IST
An earlier version of the story had incorrectly mentioned Vertex as an investment arm of Temasek, the same has been rectified.
