Bengaluru-based used two-wheeler marketplace BeepKart shuts operations after raising $18 million

Beepkart, a Bengaluru-based used two-wheeler marketplace, has shut its operations, ending a four-year journey that once led India’s pre-owned two-wheeler market. 

The startup’s website confirmed the closure with a statement assuring support to existing customers. 

Mounting losses, unplanned expansion and poor service quality led to the company’s collapse. 

Also read: After gaming ban, Dream11 parent enters wealth tech, launches 'Dream Money' for Gold and investments (startuppedia.in)

About BeepKart

BeepKart was founded in 2021 as a full-stack platform for buying and selling used two-wheelers, covering inspection, refurbishment, financing, and warranties.

It raised $5.6 million in its Series A round from its existing investors, including Chiratae Ventures, Stellaris Venture Partners, and Vertex Ventures, in April 2024. 

According to NewsBytes, the firm raised over $18 million since 2021, and there was a big revenue jump last year. However, BeepKart couldn't make up for its mounting losses of ₹66 crore in FY24 alone.

As reported by Inc42, Beepkart co-founders Hemir Doshi and Abhishek Saraf are currently exploring the sale of BeepKart’s assets and tech stack, and also plan to return the remaining capital to investors.

This comes weeks after the startup closed its Chennai operations, sacking employees and with gradual exits in Bengaluru.

According to an exclusive report by Entrackr, Beepkart went through mass layoffs last year. 

Despite earlier claims of shifting to an asset-light model that raised profitability and investor conversations, the firm struggled to sustain its business. 

In FY24, the used two-wheeler marketplace reported a 165% YoY jump in revenue to Rs 100 crore, but losses also doubled to Rs 66 crore. Its FY25 results have yet to be disclosed.

Bengaluru-based BeepKart’s rival, CredR, wound up its operations in October last year, while Cars24 also closed its Moto business, a similar vertical.

Also read: ‘Zomato is practising unethical behaviour against employees,' claims Manager (startuppedia.in)