Truebil, a Mumbai-based startup, raises Rs 35 Crore In Series A funding from Kalaari Capital, Inventus Capital and Tekton Ventures and also from Kae Capital, an Existing Investor participated in the round too.
An online market for buying and selling second hand cars, Truebil’s founders include former Housing employees, who are focused on peer to peer sales of cars unlike large classified players like CarDekho and CarTrade.
Suraj Kalwani, co-founder and CEO of Truebil said, “The difference between classifieds players and us is that we handhold customer throughout the experience, helping close the transaction.”
Started operating in March 2015, Truebil soon closed Rs 3.2 crore round led by Kae Capital, which was used by the company to expand across Mumbai, and is currently doing 200 transactions a month with a gross value of Rs 5 crore.
Till next year, Truebil is planning to expand in the four cities which include Bengaluru and Delhi with a target of 1500 transactions a month. The company is also providing services like QuickSell, where if a car is not sold within 15 days at the recommended price the startup will purchase it.
Rutvik Doshi, director at Inventus Capital said, “One thing that we are convinced about is horizontal classifieds will start getting unbundled and specialized with different. Used car sales is a large market with high ticket sizes, but extremely inefficient.”
As per the industry executives, the size of the used car market in India at $125 billion out of which 1% is on marketing by dealers. Also, car manufacturers spend almost Rs 4,500 crore on advertising every year.
Companies like Truebil expect that peer to peer model will grow faster in the second hand car sales market in India, given the supply gap. Kalwani added, “In markets like US which are demand driven it takes three months to sell a second hand car while in India it takes 45 days, which makes it more supply constrained market.”
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