Japanese startup gets funding to sell used bulldozers, backhoes, and cranes

Tokyo-based Sorabito, the startup behind heavy machinery ecommerce marketplace Allstocker, today announced that it raised JPY 100 million (US$832,000) in funding from domestic venture capital firm GMO Venture Partners and undisclosed angel investors. It’s the startup’s first round of external fundraising, and will be used to hire engineers and sales staff.

See: Finally, an Amazon for used construction equipment

In addition to used construction equipment, Allstocker also sells farming machinery, forestry equipment, and vehicles to buyers across Asia. Sorabito COO Ryosuke Nakayama tells Tech in Asia that the platform is ready to sell industrial robots as well.

Historically, used heavy machinery has been almost exclusively sold at live auctions. If you’re a construction company in the Philippines and you want a Hitachi excavator, for example, you’d have to fly to Japan, pay to attend the auction itself, and hire a Japanese speaker to help you navigate the bidding and paperwork. All of that can cost a company tens of thousands of dollars in overhead.

Putting the equipment online, in an Amazon-esque fashion (as opposed to an eBay), is a game changer for the industries that Allstocker serves. The startup claims that nearly half the world’s construction is taking place in Asia, but says that there’s a huge disparity in equipment pricing and availability between countries that make heavy machinery (like Japan) and those with rapidly expanding markets that wish to buy them (most countries in Southeast Asia). Allstocker provides online payments, shipping logistics, and on-site inspections. The site is available in English and Japanese.

Allstocker, currently in beta, is scheduled to go live on November 2. Since the beta opened six months ago, the startup has attracted users from 140 countries and 15,000 listings. Ryosuke says his team is hoping to move at least 10 machines a month, or roughly US$300,000 worth of equipment.