May 20, 2024

The Mumbai-based Digital AI/ ML pre-owned vehicle platform, SheerDrive, has raised an unspecified amount in a pre-Series A financing round, which Inflection Point Ventures led. The game also had investors from Prajit Nanu (co-founder and CEO, NIUM), JITO Angel Network, INSEAD Angels India, Group Landmark, Volrado Venture Fund and many more. The funds raised will enable the company to expand into new markets and improve the technology infrastructure for dealerships with new cars, which will unlock value in used car sales.
“Our goal is to address legacy issues around convenience, transparency, and pricing for both new car dealers and customers. We have developed a pioneering AI-ML-based VIAR technology platform, which is dedicated to accelerating pre-owned transactions and driving value for all stakeholders. We are thrilled to have Inflection Point Ventures (IPV) partner with us in our mission to revolutionize the used car market in India. This investment underscores our position as a leading player in the pre-owned vehicle platform market, and we believe IPV’s expertise and support will help us achieve our ambitious growth targets,” said Ravi Mehra, CEO and co-founder of SheerDrive.

The investment will enable SheerDrive to accelerate its growth and expand its services nationwide. In its official announcement, the company announced that it is currently seeing 41% growth over the past quarter and is positive for units and plans to reach a GMV of 500 million ARR and transactions on more than 100,000 vehicles in 35 cities by the end of FY2025 and that it plans to start operations in 19 cities, and also facilitate used car transactions that exceed $40 million.”With SheerDrive’s unique digital platform ‘VIAR’ car upgraders get the opportunity to sell their old car at a fair price similarly the new car dealer gets to transact on the used car without making any losses or getting stuck with working capital issues. With the entire buying/selling process being automated, this platform ensures transparency and reliability to their stakeholders,” said Mitesh Shah, Inflection Point Ventures (IPV) co-founder.
Today, the top luxury car manufacturers are betting on the smaller towns. Companies like BMW, Mercedes-Benz, Audi, and Lexus see potential in emerging markets in Tier II and Tier III cities that are expanding rapidly. The demand for used cars and the increasing number of dealerships within smaller towns play an essential part in the growth of luxury vehicles.

Audi India’s business of pre-owned vehicles has seen the highest-ever sales volume, with a growth rate of 50. “We currently have more than 300 cars available on the Audi Approved: plus portal across the country. In the past two to three years, the market for pre-owned cars has increased, especially in Tier-II and Tier-III cities. Our Audi Approved: plus (pre-owned) car business has grown from 7 facilities in 2021 to 23 facilities at the moment in order to meet this rise in demand,” stated Balbir Singh Dhillon. Chief for Audi India.

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