Yamaha Motor leads $6.5m round of Indian used two-wheeler marketplace

Incredible Technologies (aka CredR), an India-based platform for buying and selling used two-wheelers, has raised US$6.5 million in its latest funding round led by Yamaha Motor.

Existing investors Omidyar Network India and Eight Roads Ventures also took part in the round, along with auto-focused early-stage venture capital firm Astarc Ventures.

CredR founders Nikhil Jain and Sasidhar Nandigram, Photo credit: CredR

CredR said it will use the fresh capital to consolidate its market position, improve its technology platform, and expand customer offerings.

Founded in 2015, CredR focuses on formalizing the unorganized and fragmented used two-wheeler market. The company works with about 100,000 dealers across India and said that more than 300,000 customers have bought a used two-wheeler through its platform to date.

Besides the sale and purchase of secondhand motorcycles and scooters, CredR also offers services such as home test rides and contactless home deliveries.

“Yamaha Motors’ comprehensive understanding and experience in the two-wheeler mobility segment aligns with our first-to-market business model. The pandemic has catalyzed the already existing demand for affordable private mobility in India, and these funds will allow us to scale rapidly and fulfill this demand,” CredR co-founder Sasidhar Nandigam said in a statement.

Yamaha Motor’s investment in the startup is likely driven by India’s large two-wheeler market. According to a report, the Indian two-wheeler market is estimated to hit 26.6 million units by 2025. Ratings agency ICRA predicts the two-wheeler market will register a 12-14% year-on-year growth this fiscal year despite the new wave of the Covid-19 pandemic.

Yamaha Motor’s partnership with the used two-wheeler marketplace may help achieve higher resale value on its products. Resale value is one of the key factors for Indians look for when buying a new car or bike. There is already a booming ecosystem for sale and purchase of used cars in India. Some of the key players are CarTrade, CarDekho, and Cars24.

Yamaha Motor is also one of the key players in the Indian two-wheeler market. According to market tracker Statista, Yamaha Motor India has 3.47% share. Hero MotoCorp leads the space with 37.04% market share.