Online marketplace for buying and selling used vehicles (currently bikes), CredR has raised about Rs 99 crores ($15million) in a Series A round from Eight Roads Venture, the proprietary investment arm of Fidelity International Ltd. This is Eight Roads’ second investment in a day, its previous one being an $8.5 Million round into on-demand hyperlocal delivery startup ShadowFax.
Currently present in Delhi, Bangalore and Pune, CredR intends to use these fresh funds to expand to 20 more cities as well as to strengthen its product engineering and marketing division. After this funding round, Managing Director at Fidelity’s investment arm, Kabir Narang will join the board of CredR.
Founded last year, CredR raised seed funding this year from prominent investors and names such as K Ganesh, Kunal Bahl & Rohit Bansal of Snapdeal, and Amit Agarwal of Amazon India.
According to Sumit Chhazed, who founded the company along with his batchmates, Nikhil Jain, Nittin Mittal, and Shiv Agarwal, CredR plans to bring the experience of buying a new vehicle to buying used vehicles.
CredR is now planning to come up with a dynamic pricing algorithm which would rate the vehicles on its platform on a scale of 1 to 5 by taking into account various parameters such as condition, seasonality and demand in order to ensure fair price and enable the users to make an informed decision.
This makes it a different and perhaps a better platform than portals such as OLX or Quikr which just connect buyers and sellers with no control on pricing.
We are focussing on the large used vehicle market with an estimated value of USD 10 billion. The market is ripe for technology-led disruption that CredR aims to bring in the process of buying and selling pre-owned vehicles,
CredR claims to sell over 100 vehicles in a day having grown up from selling 4 vehicles in a week in the beginning and has over 2,000 vehicles and over 5,000 customers registered on its platform. The used vehicle market has become an attractive option for investors these days as people have grown to be more open to the used vehicles.
This domain however, is pretty much filled up with popular players in the used vehicle segment such as CarTrade, CarWale and CarDekho. However, while these are primarily focused on four-wheeler used vehicles, CredR aims to become a used-vehicles platform for all sorts of motorised wheels out there.
As for investments in this space, CarDekho and CarTrade have managed to secure $50 million and $30 million respectively with CarDekho securing investment from Ratan Tata as well. And this may just be the beginning the used vehicle market is expected to grow at a CAGR of 20% by 2017 with the pre-owned two-wheeler sector touching $8-12 billion in the last fiscal year.