In India, the market for second-hand vehicles has traditionally been unorganized and offline. However, in recent years, startups have emerged that aim to digitize and streamline the process, making it easier for customers to buy and sell used vehicles.
One such startup is Bike Bazaar, a Pune-based company that was founded in April 2017 by Srinivas Kantheti and Karunakaran Vadakkepat.
Bike Bazaar’s primary objective is to make the two-wheeler financing ecosystem more robust.
The platform has become one of the largest and most popular in India for buying and selling used two-wheelers.
The second-hand vehicle market in India
In India, two-wheelers are the primary mode of transportation for millions of people, making the second-hand market a crucial part of the overall transportation industry.
According to a report by the National Institution for Transforming India (NITI Aayog), the second-hand two-wheeler market in India is estimated to be worth around Rs 50,000 crore, and it is growing at a rapid pace. The report suggests that the used two-wheeler market is approximately four times larger than the new two-wheeler market in terms of volume.
The demand for second-hand two-wheelers is mainly driven by the affordability factor. A brand new two-wheeler can be quite expensive for many people, especially those from lower-income households. On the other hand, a used two-wheeler can be bought at a much lower price, making it a more feasible option for many people. Additionally, the low maintenance cost and higher fuel efficiency of two-wheelers make them an attractive option for daily commuting.
The Indian market of second-hand vehicles is vast and largely unorganized, with most transactions occurring offline through small dealerships, local classifieds, or informal networks. In recent years, however, the online marketplace for buying and selling used vehicles has been growing rapidly as more and more startups are entering the market with innovative solutions to address the pain points of the industry.
Bike Bazaar: Addressing the Gap and resolving pain points
The founders, Srinivas Kantheti and Karunakaran Vadakkepat recognized the need for a hassle-free experience and affordable solutions for customers throughout the lifecycle of their two-wheelers. Bike Bazaar provides a range of services, from financing for new or pre-owned bikes to access to eco-friendly bikes, insurance coverage, and a clear-cut marketplace to buy or sell pre-owned two-wheelers.
The customer-centric approach of Bike Bazaar aims to manage the lifecycle of vehicles, building long-term relationships with customers.
Bike Bazaar also forms strategic partnerships with other key players in the industry, including OEMs, pre-owned two-wheeler dealers, marketplaces, and others, to extend its reach and serve customers better.
Bike Bazaar’s focus on solution-oriented offerings and maintaining a strong connection with its customers ensures that it provides maximum value throughout the lifecycle of a two-wheeler. This approach results in higher customer lifetime value while keeping customer acquisition costs low.
Numbers: funding and revenue
The startup has raised a total of $105.1 million from investors such as Faering Capital, Women’s World Banking, KWF DEG, and Elevar Equity.
According to Entrackr, in FY22, Bike Bazaar recorded gross revenue of Rupees 149.72 crore.
Bike Bazaar’s success is a testament to the growing demand for organized and hassle-free second-hand vehicle marketplaces in India. The company has revolutionized the industry by providing an innovative platform that offers a range of services to customers, enabling them to buy and sell two-wheelers with ease. Bike Bazaar’s commitment to providing affordable and sustainable solutions throughout the lifecycle of two-wheelers makes it a welcome addition to the Indian market.