Existing investors Omidyar Network and Eight Roads Ventures also participated in the round, along with Astarc Ventures, an auto-focused early-stage venture capital firm, reports ET. CredR had previously raised $6 million in a round led by Omidyar Network in 2019, with AngelList contributing to the investment.
CredR will use the proceeds to strengthen its market position in the used motorcycles segment, which has witnessed 27% growth in sales following the outbreak of the Covid-19 pandemic. The motorcycle market is dominated by Hero MotoCorp, Honda and TVS, accounting for nearly 80% of total volume. Yamaha Motors accounts for 3.47%.
Yamaha’s investment in CredR indicates a strategic shift in the company’s bid to strengthen its market position. Yamaha could leverage the partnership to achieve higher resale value of its products and possibly offer new vehicles through CredR’s bike exchange program.
“Our partnership with Yamaha Motors validates our shared vision to provide customers the best option to buy and sell used motorcycles. The funds raised in this round will help us go deeper into existing markets and provide world-class customer experience empowered with technology,” said Sasidhar Nandigam, co-founder of CredR.
“We first invested in CredR in 2019, and are doubling down because we continue to believe that motorcycles are the most popular form of transportation in the top 30 cities in India as well as the rest of the country,” said Aditya Misra, principal at Omidyar Network India.
Consistent with Misra’s belief is the sheer size of the Indian motorcycle market, which boasts over 35 million units. However, by one estimate, 99% of the market remains unorganized—which explains the increasing interest in the segment from predominantly used cars marketplaces like Cars24, CarDekho and Droom. CarDekho has a dedicated segment for used motorcycles, BikeDekho, with financial and mechanical end-to-end services.
Founded in 2014 and headquartered in Mumbai, CredR is a leading the pure play used motorcycle marketplace in India. The company claims to have sold 300,000 used motorcycles through a network of 100,000 dealers. It has showrooms in seven Indian cities, where it offers selling points including 120+ inspection checks, six-month warranty, assured buyback and doorstep delivery.