Mundimoto, an online motorcycle buying and selling startup, has raised $22.6 million (€20 million) to expand its platform beyond its home country of Spain and into Europe, starting with Italy and Holland. The company plans to hire 50 engineers and 250 new employees to advance the technology product and support international expansion.
The round was led by international investment fund P101, as well as Maniv Mobility and Autotech Ventures.
Mundimoto comes onto the scene as a range of used car dealerships spring up, like Carma in Australia, Cars24 in India, Clutch in Canada and Vroom in the U.S. Then there’s Upway, a French startup building a marketplace for used electric bikes, that raised a seed round in November last year. Not as many startups have surfaced to supply the same type of service for motorcycles, however.
That might be because car ownership is still far more popular than motorcycle ownership, but there’s clearly a market for used motorcycles and mopeds. Since its founding in 2019, the platform has sold 4,000 vehicles and has seen a 15-fold increase in turnover, from from €1 million in 2019 to a revenue of €15 million in 2021, according to Mundimoto. While 30% of Mundimoto’s national sales come from Catalonia and 70% from the rest of Spain, 15% of the company’s overall sales are already international.
“While much attention has been focused on automotive marketplaces, motorbikes represent a very large opportunity that has received less focused attention,” said Daniel Hoffer, managing director at Autotech Ventures, in a statement. “Mundimoto has demonstrated impressive traction, innovation and operational excellence in tackling this overlooked vertical.”
Like many of its counterparts in the online used car dealership world, Mundimoto offers a one-stop-shop service. It provides facilities for sellers like online valuation, secure and direct payment to the user’s account, vehicle at-home pickup and free change of ownership. The company has a team dedicated to reconditioning its vehicles, of which it purchases an average of 1,000 per month, according to Mundimoto. The startup also delivers vehicles to the purchaser’s door and offers financing and insurance options, Nate Jaret, partner at Maniv Mobility, told TC.
“The company simplifies a highly fragmented two-wheeler retail market characterized by tiny dealerships with limited inventory, huge pricing variance, poor customer journey, poor ancillary services like financing and insurance, limited warranty options and P2P classifieds portals that are difficult to navigate and offer buyers limited options of uncertain provenance,” said Jaret.
