CredR offers an omnichannel consumer brand for buying and selling used two-wheelers
The pandemic has brought in a consumer behaviour change where the demand for two wheelers has significantly increased
Two wheeler startups such as Bounce, Yulu and Ather Energy saw large revenue increases indicating the high potential for the two wheeler segment in the future
Bangalore-based Incredible Technologies Private Limited (CredR), has raised INR 48.1 crore ($ 6.5 Mn), in its latest round led by Yamaha Motors, and existing investors like Omidyar Network India,Eight Roads Ventures, and Astarc Ventures.
Founded in 2015, CredR has been focused on formalising the unorganised and fragmented used two-wheeler market, with over 1,00,000 dealers, across India. It offers an omnichannel consumer brand for buying and selling used two-wheelers.
Even though India’s used two-wheeler market accounts for over 30 Mn annualised units, challenges around standardisation of pricing, strong quality inspection and customer experience, and most notably post-sales support, persist. CredR works towards solving these issues through its full-stack vertically-integrated business model empowered with technology.
The company has showrooms situated in major cities like Pune, Bengaluru, Delhi NCR, Jaipur, Bhilwara, Sikar, and Chittorgarh.
Elaborating on CredR’s fundraise, Sasidhar Nandigam, cofounder of CredR said, “We are excited to partner with Yamaha Motors in our journey to build India’s first used two-wheeler consumer brand. Yamaha Motors’ comprehensive understanding and experience in the two-wheeler mobility segment aligns with our first-to-market business model. The pandemic has catalysed the already existing demand for affordable private mobility in India, and these funds will allow us to scale rapidly and fulfil this demand.”
Commenting on this investment, Hajime Aota, senior general manager of New Venture Business Development & R&D Strategy Section, Technical Research & Development Center of Yamaha said, “India is one of the biggest mobility markets in the world and the personal freedom that motorcycles and scooters bring, is a huge and lasting benefit for this country’s people, regardless of whether they are new or used. CredR’s clear vision behind its thriving used two-wheeler business resonated with us, and we decided to invest in the company to help their business scale bigger, which will subsequently lead to a higher quality of life for India’s people.”
While the two wheeler market in India has always been incredibly large, the onset of the Covid19 pandemic brought in a shift in consumer behavior which further accelerated the growth of the two wheeler and mobility market.
Speaking on this consumer behavioral change, Kavish Kothari, principal, Eight Roads Ventures, said, “The pandemic has caused a significant shift in consumer behaviour when it comes to mobility. Consumers today are considering owning their own vehicle to feel safer. The pre-owned two-wheeler market stands to benefit as consumers seek more economical options from organised players in the market. With their value-for-money options, contactless service and delivery and partnerships with credible OEMs, CredR is well positioned to revolutionise the pre-owned two-wheeler market in India.”
Covid-19 turned the world upside down, bringing businesses to a halt, affecting revenues and triggering layoffs across sectors. Due to lockdowns and lower income levels, sale of first-hand automobiles was down significantly, but it didn’t affect the growth of pre-owned vehicles in the country. Pre-owned vehicle segment accounted for 18% of the market share, registering estimated sales of 4.4 Mn units in FY2020, according to SIAM. Additionally, India’s used car market is estimated to reach between 6.7 Mn units and 7.2 Mn units per year by 2022, according to an outlook report by Mahindra First Choice Wheels Ltd.
