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. 

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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 $9 million in its Series A round from its existing investors, including Chiratae Ventures, Stellaris Venture Partners, and Vertex Ventures, in April 2024.

A company that generated over Rs. 230 crore brand revenue from its initiation had to close operations due to difficulties in the used-vehicle category.

Though the startup was successful in gaining trust with customers and sellers, as evident from the feedback collected on its website, its initial excessive expansion is reportedly a reason for its collapse.

The company jumped from approximately Rs. 3 Crore to Rs. 38 crore to Rs. 100 crore in annual revenue.

According to NewsBytes, the firm has raised over $18 million since 2021.

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. 

The company was in multiple M&A conversations, but they did not fructify due to category-related concerns of potential acquirers.

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

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