India-based used-motorcycle marketplace BeepKart has raised INR 74.55 crores ($9 million U.S.) in a funding round led by Temasek.
According to an exclusive report on Inc42, BeepKart raised the money in a funding round led by Vertex Ventures, the investment arm of Singapore’s sovereign wealth fund, Temasek Holdings. The round, which saw BeepKart issue 62,043 Series A CCPS at a INR 11,170-12,330 price band per share, also saw participation from existing investors Chiratae Ventures and Stellaris Venture Partners. BeepKart had last raised $3 million U.S.
BeepKart intends to use the proceeds to support its business plan, the company’s filings show. Temasek has acquired 31,021 shares for $4.5 million U.S., while Chiratae and Stellaris picked up 15,511 each for $2.3 million U.S. Following the round, the investors’ share in BeepKart increased to 40.3%.
BeepKart is leveraging its network partners to offer life-cycle, post-sales services to customers, through reliable spare parts, accessories, loans and insurance. Since the onset of the pandemic, which boosted demand for personal vehicles, the sales of both used motorcycles and cars have rapidly increased in India. The likes of CredR, BeepKart, and Bike Bazaar are hoping to digitalize the fragmented motorcycle market, which accounts for 35 million units across the country.
CarDekho Group’s BikeDekho, Cars24’s Bikes24, and Droom Bikes, too, are vying for a piece of a segment with vast untapped potential. Increased funding activity in the last couple of years reflects investors’ focus on the used-motorcycle segment. During the period, TVS Motor invested $10.6 million U.S. in used-motorcycle sales-and-subscription site DriveX and Women’s World Banking Asset Management (WAM) led a $21.3 million U.S. Series-D round for Bike Bazaar.
Founded in 2021 by Hemir Doshi and Abhishek Saraf, BeepKart is currently active in Bengaluru. The company had announced an earlier expansion but did not follow through. The latest round could help bring the expansion plans to fruition.