The venture, launched by three Indian Institute of Technology, Bombay, alumni in November, raised an undisclosed sum from Growthstory, the family office of K. Ganesh and his wife Meena Ganesh, both entrepreneurs, in June.
Other early investors in the company include Snapdeal co-founders Kunal Bahl and Rohit Bansal and Amazon India head Amit Agarwal. Kabir Narang, managing director at Eight Roads Ventures, will join the company’s board, CredR said in a statement on Friday.
The company initiated talks with investors to raise $15 million, Mint reported on 23 June.
Launched in Mumbai, CredR has expanded its operations to Delhi, Bengaluru and Pune. The fresh funds will be deployed to expand to 20 cities in the coming months, besides strengthening its technology backbone and marketing.
“While buyers get a seamless experience similar to a new vehicle purchase, complete with expert-tested bikes and unmatched service, sellers have the assurance of getting a fair price for their prized two-wheelers. With Fidelity coming onboard, our growth plans have just been put into top gear,” said Sumit Chhazed, co-founder of CredR.
The company claims to have more than 2,000 vehicles on its platform and over 5,000 customers.
According to industry estimates, the pre-owned two-wheeler sector was pegged at $8-12 billion in the last fiscal year.
The used two wheeler market in India is dominated by online classified portals such as Quikr, which has so far raised about $345 million, and OLX, which is backed by South African multi-national mass media corporation Naspers.
OLX and Quikr are platforms connecting buyers with sellers and do not partake in price determination or the actual transaction. Besides, they list products across multiple categories unlike companies such as CredR or reverse commerce companies such as ReGlobe, Budli and YNew, which are focused on used electronic gadgets.
A number of online automobile classified portals such as CarTrade, CarDekho and Carwale, which deal in used four-wheelers, have attracted investor interest of late. CarTrade and CarDekho have received $30 million and $50 million, respectively, of investment since October. CarDekho also secured an investment from Ratan Tata, chairman emeritus of Tata Sons Ltd.
This article was first published on Livemint.com
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