Bengaluru-based two-wheeler trading platform BeepKart has raised $9 million in a funding round led by Vertex Ventures. The funding round also saw the participation from existing investors Stellaris Venture Partners and Chiratae Ventures.
The company's board of directors passed a special resolution on October 4 to issue 62,043 Series A Compulsory Convertible Preference Shares (CCPS) at an issue price in the Rs 11,169.62 to Rs 12,330.10 price range. A breakdown of the data revealed that Vertex Ventures picked up 31,021 shares for $4.5 million (Rs 37.27 crore) via its South-East Asia Fund.
On similar lines, Stellaris Venture, through its India Trust II fund, picked up 15,511 shares for a cumulative total of $2.25 million (Rs 18.63 crore). Chiratae Ventures invested via its entity Vistra ITCL, bagging a total of 15,511 shares for a sum of $2.25 million.
With this, the total holding of the promoters, Hemir Doshi and Abhishek Saraf, stands at 40.29 per cent, which is down from 54.59 per cent the previous year, as per a report by Entrackr.
Last year, the start-up had raised $3 million from Stellaris Venture, Chiratae Ventures, and other angel investors including Mamaearth's founder, Varun Alagh and Delhivery founder Sahil Barua.
Founded in 2021, Beepkart operates in the highly unorganised used two-wheeler market, offering all services including documentation, inspection, insurance, spare parts, accessories, loans and insurance for used bikes through its network partners. It competes with players like CredR, Droom, OLX and Bike Bazaar, which have been the dominant players in the used two-wheeler market space.
The used bike industry in India is mostly run on trust by private vendors, neighbourhood mechanics, and small dealers. Through products like Honda Best Deal and Mahindra First Choice Wheels, two-wheeler manufacturers have also been experimenting in the market.
Last month, another online two-wheeler marketplace Bike Bazaar raised $52.8 million in Series D funding round in a mix of equity and debt.