Used Two-Wheeler Marketplace Vutto Raises $7 Mn

SUMMARY

The startup’s funding round was led by RTP Global, with participation from existing investor Blume Ventures

Founded in 2024, Vutto operates a full-stack platform for buying and selling used two-wheelers

The startup plans to use the fresh capital to expand its footprint across Delhi NCR, enter new cities, and strengthen its core operations

Used two-wheeler marketplace Vutto has raised $7 Mn (around INR 61.4 Cr) in its Series A round led by RTP Global, with participation from existing investor Blume Ventures.

The startup plans to deploy the capital to expand its footprint across Delhi NCR, enter new cities, and strengthen its core operations like supply, refurbishment, and customer service capabilities.

Founded in 2024 by former Swiggy executive Rohit Khurana and former SuprDaily director Sitaram Ankilla, Vutto operates a full-stack platform for buying and selling used two-wheelers. The platform allows users to browse certified vehicles online, take a test ride at Vutto’s physical showrooms, and purchase two-wheelers that come with a six-month warranty and support for paperwork, insurance, and financing.

Vutto claims to have sold 1,500 vehicles within a year of its inception. The startup has three showrooms in Delhi, and claims that vehicles on its platform typically sell within 12 days of listing.

Vutto also claims to have established partnerships with banks and financial institutions for selling repossessed two-wheelers.

Prior to this funding round, the startup had raised a seed funding of $1 Mn from Blume Ventures and a host of angel investors.

Startups Disrupting Used Vehicle Markets In India

India’s used two-wheeler market is an attractive one. As per reports, around 9 Mn pre-owned two-wheelers were sold in India in FY24, generating estimated revenue of $3.8 Bn.

Over the years, there has been a significant technological shift in the industry. The used vehicle market in India was largely unorganised, resulting in consumer-to-consumer deals. This resulted in lack of trust, issues with paper work, and other problems.

However, a number of tech startups have emerged over the past decade, like Bikewale, BikeDekho, RoamPrime, to address these issues and organise the used two-wheeler market. But, it is pertinent to mention that the journey has not been easy for many startups in the sector.

The segment has thin margins and high operational costs, straining unit economics. Fragmented supply, lack of standardisation, and customers opting for local dealers are some of the hurdles preventing many players in the segment from scaling up meaningfully.

Last week, Inc42 reported that used two-wheeler platform BeepKart has shut its operations. Others like Yamaha-backed CredR and Car24’s used two-wheeler vertical Cars24 Moto also wound up.

Even so, investors remain bullish on the segment and are backing startups with differentiated models. Last month, Inc42 reported that TVS Motor is investing an additional INR 64 Cr in pre-owned two-wheeler marketplace DriveX.