The automobile and vehicle market has always been an evergreen genre for businesses. The level of demand and profits that automobile giant conglomerate make in India requires no introduction. While the new automobile market is owned and ruled by big houses like Maruti, Tata, Hyundai and Mahindra etc., the requirement for used vehicle marketplace has been increasing exponentially.
We have seen biggies such as Quikr, CarTrade and Olx etc already been able to make their way in this segment. Still, there is a lot of scope in the used vehicle industry and there are local vendors who make decent money from the same.
Having said that, CredR which is a used vehicle marketplace based in Mumbai have raised their Series A funding of $ 15 million from Eight Roads Venture which is Fidelity’s proprietary investment arm. The announcement and confirmation of this news was done on Sep 11.
Some of us might also remember that CredR began earlier this year when they raised their seed round funding from Rohit Bansal, K Ganesh, Kunal Bahl, and Amit Agarwal.
Currently offering their services in 4 metropolitan of India namely Delhi, Pune, Bangalore and Mumbai, CredR is now aiming at expanding their services to 20 cities across the nation. It is also worth a mention that Mr Kabir Narang who is MD at Fidelity’s Investment Arm will be joining the CredR board.
CredR was started by IIT Mumbai and Standford University Alumni.
We began our operations with sell of as less as 4 vehicles per week and now we have been able to make a mark with selling close to 100 vehicles per day. –Sumit Chhazed (Co-founder CredR).
CredR team have been said to working on a dynamic algorithm for pricing of used vehicles. The CredR marketplace currently have a CredR score based range of zero to five points. The algorithm will make it easier for buyers to pick a bike without worrying about cost as this can be easily done on the basis of algorithm which will consider all points including condition of bikes, seasons and demand etc.
Our Take on CredR
The concept of CredR sounds promising and works fine in areas where people come from other cities to work and often buy second hand vehicles. They then generally sell them back to others in 1-2 year once they shift back to other cities or make enough money to buy a new vehicles.
This is proven by the point that all cities where CredR is currently operational are metropolitian. It will b interesting to see how CredR perform in second level cities of India. They would need more exposure and marketing strategies to make a mark in these areas.
