CredR, omnichannel marketplace for used two-wheelers, has raised Rs 16.17 crore ($2 million) via convertible debt from existing backer Yamaha Motor. This is the first debt round of the Mumbai-based company in 2022.
The board at CredR has passed a special resolution to issue 44,180 compulsory convertible debentures (CCD) at an issue price of Rs 3,360 per debenture to raise Rs 16.17 crore or close to $2 million from Yamaha, the company’s regulatory filing with the Registrar of Companies (RoC) shows.
Led by Nikhil Jain and Sasidhar Nandigam, CredR is an online marketplace for buying and selling two-wheelers. It offers 100% inspected bikes and post-sales support. At present, the company has presence in seven cities including Ahmedabad, Bangalore, Chennai and Delhi (NCR).
In June 2021, CredR had raised $6.5 million in a funding round led by Yamaha with the participation of Omidyar, Eight Roads Ventures and others. Earlier this year, the company said that it will invest $15 million in the coming years for expansion. Leveraging the franchise model, it plans to open 50 showrooms by FY23.
While CredR has not disclosed its financial numbers for FY22 yet, its revenue from operations shrank 54% to Rs 9.5 crore in FY21 from Rs 20.7 crore in FY20. As per the annual financial statements with the RoC, annual losses of the company surged 2.6X to Rs 42.6 crore in FY21 as compared to Rs 16.5 crore during FY20.
CredR competes with the likes of BeepKart, Bikes4Sale, BikeWale, Droom, OLX and Bike Bazaar. Last month, Vertex Ventures led a $9 million Series A round in Beepkart. Entrackr exclusively reported the funding round. Bike Bazaar also raised $21.3 million led by Women’s World Banking Asset Management in September.
Last month, Moto Business Service India (MBSI), the leasing arm of Yamaha Motor, said that it will foray into the two-wheeler electric vehicle segment by partnering with Hyderabad-based startup Only Electriq Solutions. The Tokyo-based automobile giant is also an investor in bike and car rental startup Drivezy which recently alleged that Yamaha leveraged the Bengaluru firm’s confidential data to set up a competing business, while saying that it would buy it. Entrackr was first to report the development on October 19.