January 16, 2023, India: 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 closed its Pre-Series A funding from a clutch of investors at an undisclosed valuation. The funding round has been led by JITO Angel Network, and supported by angel investor group INSEAD Angels, along with notable HNIs, and backed by existing investors – Group Landmark – a TGP-invested company, Volrado Venture Fund, and Mr. Prajit Nanu, Co-Founder and CEO at NIUM.
The funds will be utilized in scaling growth and expanding SheerDrive’s footprint in the pre-owned car market in India, as well as further developing the company’s AI/ML-based intelligent VIAR technology platform to its next version of operational capability.
“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 significant role in driving personal mobility and we strongly believe that automotive dealerships would see a 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
“SheerDrive aims to disrupt the pre-owned car market in India, backed by innovation and in-depth market understanding, to create value not only for the New Car Dealers but also for the customers by alleviating the legacy issues of convenience, transparency, and pricing in the industry. SheerDrive is committed to accelerating pre-owned transactions backed by our pioneering VIAR technology platform. In addition, the funding will help us drive into new geographies and usher in the much-needed reform pertinent for the New Car Dealerships who are vying to grab the share of the pie in this developing market,” said Ravi Mehra, the CEO, and Co-founder of SheerDrive.
SheerDrive is live in 19 cities and has already enabled used-car transactions worth over USD 40 million. This year, the business is delivering 41% Q-o-Q growth and is unit positive. SheerDrive aims to achieve a GMV ARR of $500 million and transactions for over 100,000+ vehicles across 35 cities by FY2025.
Indian used-car market, which is today valued at $23 billion in FY2021-2022, is projected to grow at double the rate at a CAGR of 19.5 percent till FY 2026-2027, as per IndianBlueBook. Several factors have fuelled the growth of the pre-owned car market in India, including lowering the vehicle replacement cycle from 6 years to 4 years, increasing penetration of used car financing, and the semiconductor chip shortages for new cars, and an underpenetrated passenger vehicle market.