Mumbai-based used bikes marketplace Credr has raised INR 38 Cr (US$ 6 Mn) in an investment round led by Omidyar Network. Existing investors Eight Roads Ventures, GrowthStory and AngelList also participated in the funding round for the ecommerce player.
With the funding, Credr wants to further expand horizontally in the used bikes ecommerce space in Pune, Bengaluru, Delhi NCR, Jaipur, Kota and Hyderabad. Additionally, the company will invest the funds in expanding its technology and product teams.
Credr focusses on creating a niche solution in the used bike segment which is highly unorganised and fragmented through a mix of online and offline approach. The company is founded by IIT Bombay graduates, Nikhil Jain, Sumit Chhazed and Nittin Mittal, however, Chhazed and Mittal have since departed and Jain is currently the sole founder of Credr.
Customers planning to buy used bikes can either select them on the website and then complete the transaction by purchasing them from the nearest Credr showroom or they can walk into these showrooms and buy the vehicles without using the website. Credr, which has a chain of over 50 franchisee showrooms, also provides a formalised platform to over 10K auto original equipment manufacturer stores and used motorcycles dealers. Using its proprietary technology and full-stack vertically integrated business model, Credr claims to be working to improve the overall customer experience.
The startup claims that over 130K customers have purchased used bikes from its platforms since its launch in 2014. In addition to selling used bikes on its platforms, Credr also provides post-sales services to its customers.
Prior this round, Credr has raised funds from Eight Roads Ventures, AngelList, GrowthStory, angel investors and venture debt investments from Blacksoil Capital.
While the used bike segment is growing rapidly, yet it remains plagued by problems like poor customer experience, suspect motorcycles quality, lack of standard pricing and non-existent post-sales services creating a massive trust deficit in the minds of the customers.
However, players like Droom, BikeDekho, Olx, among others, providing post-sales services, finance options, and additional support services, have brought the trust among the mindset of Indian users for going with used bikes.
In the automobile segment, Credr competes with the likes of Droom, BikeDekho, Bikes4Sale, among others.
According to a Statista report, bike sales in India reached an all-time high in 2019, selling around 21 Mn units. This figure is almost double the 2011 sales when just 11.77 Mn bikes were sold in the country.