BeepKart Secures Additional Funding to Fuel Expansion of Used Two-Wheeler Marketplace

Leading used two-wheeler reseller BeepKart has successfully extended its Series A fundraising round. The company secured an additional Rs 54 crore (approximately $6.5 million) from its existing investors, including Chiratae Ventures, Stellaris Venture Partners, and Vertex Ventures.

Boosting Capitalization for Growth

This latest investment demonstrates continued confidence from BeepKart’s established backers. Through a special board resolution, the company issued 45,203 Series A2 Convertible Cumulative Preference Shares (CCPS) at an issue price of Rs 11,935 each, raising the targeted Rs 54 crore. Chiratae Ventures and Stellaris Venture Partners have already contributed a portion of the investment, with Rs 33.2 crore received to date. The remaining funds are expected to be received shortly.

Building on Previous Success

This extended Series A round follows BeepKart’s initial Series A funding secured in October 2022, which was led by Vertex Ventures and amounted to $9 million. This latest investment brings BeepKart’s total funding to approximately $18.5 million.

A data intelligence platform called TheKredible estimates that the company’s post-allotment valuation is approximately Rs 362 crore ($44 million).

A Differentiated Approach to the Used Two-Wheeler Market

Founded by Hemir Doshi and Abhishek Saraf, BeepKart caters to the demand for pre-owned two-wheelers from popular brands like Honda, TVS, Suzuki, Bajaj, Yamaha, Hero, and KTM. Beyond simply facilitating used bike sales, BeepKart differentiates itself from online classifieds by offering a comprehensive ecosystem of services. This includes access to reliable spare parts, after-sales services, accessories, loan options, and insurance for used bikes, all facilitated through a network of trusted partners.

Geographic Expansion Plans on the Horizon

Currently operating in Bengaluru and Chennai, BeepKart has ambitious expansion plans in place. The company intends to leverage the additional funding to establish a presence in new cities, further solidifying its position within the used two-wheeler market.

Growth and Competition in the Pre-Owned Market

While BeepKart was still in a pre-revenue stage during FY22, the company demonstrated significant growth in FY23. For the fiscal year ending March 2023, BeepKart reported revenue of Rs 21.86 crore. However, the company is still in its early stages, and its losses for the same period stood at Rs 27.88 crore. In this competitive landscape, BeepKart faces competition from established players like CredR, OLX, and Bike Bazaar.