Update: Appears to be some confusion about disclosing the amount of investment: After Sanghi told us they’re not planning to disclose how much money they’ve raised, Alok Mittal of Canaan partners has posted on VentureWoods that it’s $5 million.
Update: In conversation with MediaNama, Sanghi said that they’re not disclosing the amount of funding and he doesn’t know where The Economic Times has got its numbers from. MotorExchange is now open to consumers who want to sell their cars as well, though buyers are going to remain only dealers. All buyers on MotorExchange need to go through a KYC process and pay a deposit. The fleet business for MotorExchange, according to Sanghi is live in 80 cities, and they’lll use this round of funding to expand the consumer business from two cities (Mumbai and Chennai) to 10 cities in the next 12 months.
Much of the money will be spent on marketing and operating costs, and in order to grow the business, they need to expand their team from 70 to 225. While there isn’t an offline component to this business, they need to hire for inspection, since vehicles put up for auction are certified at a local level. CarTradeIndia is for consumers who want to buy vehicles, while MotorExchange is for dealers. Sanghi said that there’s no plan to allow consumers to buy vehicles via an exchange format because of the detailed buyer KYC and depost, and this business scales only with dealers.
Earlier: A little over a year after it raised its Series A round of funding, used vehicle marketplace MotorExchange has raised $5 million (unconfirmed) from Epiphany Ventures, and returning investor Canaan Partners, reports The Economic Times. MotorExchange Founder Vinay Sanghi was previously the CEO of Mahindra First Choice.
MotorExchange has two businesses: for the institutional seller, there’s the MotorExchange marketplace for repossessed vehicles, which has banks and finance companies looking to sell repossessed vehicles in bulk, and automobile dealers as buyers. For the individual, there’s CarTradeIndia; MotorExchange had previously acquired CarTradeIndia. On the institutional front, MotorExchange competes with eBay India’ B2B Motors business.
Note: we’ve contacted Sanghi for more information and will update.
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