MUMBAI :
Sheerdrive, a Mumbai-based Digital AI/ ML pre-owned vehicle platform, which deals with all the key elements required to run an effective used-vehicle program for New Car Dealerships (NCDs), has successfully raised its pre-Series A round. The fundraise has been led by JITO Angel Network, and supported by angel investor group INSEAD Angels India, along with notable HNIs and existing investors, Group Landmark, Volrado Venture Fund, and Mr. Prajit Nanu, Co-Founder and CEO at NIUM, a multi-billion dollar fintech enterprise.
Sheerdrive is live in 19 cities and has already enabled used-car transactions worth over $40 million. The company is currently delivering 41% Q-o-Q growth and is unit-economics positive. Sheerdrive aims to achieve a GMV ARR of $500 million and transactions for over 100,000+ vehicles across 35 cities by FY2025.
“Sheerdrive aims to disrupt the pre-owned car market in India, backed by innovation and in-depth market understanding. In doing so, alleviates legacy issues of convenience, transparency, and pricing in the industry for New Car Dealers and customers. We are committed to accelerating pre-owned transactions through our pioneering VIAR technology platform. The funding will help us expand into new geographies and elevate the tech stack for New Car Dealerships to unlock value in used car transactions,” said Ravi Mehra, CEO and Co-founder of Sheerdrive.
“Sheerdrive has a passionate and highly experienced team with in-depth industry experience. It perfectly syncs with the business aspects we at JITO look for. Pre-owned cars will play a big role in people adopting personal mobility through an upgrade from a two-wheeler or directly owning a pre-owned car as their first car. We strongly believe that automotive dealerships would see significant disruption over the medium to long term driven by a few critical factors, such as shifting customer preferences and digital disruptions across the automotive value chain. This is where Sheerdrive can really make a difference, and we are excited to be part of the growth journey of Sheerdrive," said Pooja Mehta, Chief Investment Officer, JITO Angel Network.
Archit Vijoy, founder of INSEAD Angels India, comments, “The Indian used-car market Sheerdrive is looking to capture is massive and unorganized! Consider this statistic: New Car Dealers in India retail approximately 3 to 5% of the country’s pre-owned cars vs. 33% in the US. This is due to lack of tech and used-car competence. Ravi and his team are fixing this. Our thesis at INSEAD Angels is straightforward: we back founders that look to capture alpha in large unorganized markets using technology.”
Sheerdrive successfully raised its seed round in November 2020 from Group Landmark.
"This partnership with Sheerdrive is in line with our approach of working with tech-enabled businesses in the automotive value chain, and Sheerdrive's products complement our objective of digital growth. Digital has become a pillar for Group Landmark's future. We see worth in developing a value-driven digital platform that benefits everyone in the ecosystem as the pandemic further accelerates demand for used automobiles owing to a preference for personal means of transportation,” said Harshal Desai, Director, Group Landmark.
