Bangalore-based mobile peer-to-peer marketplace for buying & selling used cars Zoomo has secured $1 million seed funding from SAIF Partners, reports The Economic Times. The funds will be used to strengthen Zoomo’s presence in Bangalore and expand to Mumbai & other cities over the next six months.
The Zoomo app is currently only available for Android devices, and it’s not clear if & when it’ll be made available for iOS and other mobile platforms.
Founded by Arnav Kumar, Himangshu Hazarika and Aniket Behera in July this year, Zoomo claims to have over 1800 used cars from Bangalore listed on its app and sold more than 100 cars so far. The startup also claims that the app only lists verified cars, and provides alerts based on user’s preference across parameters like budget, age of car, number of kilometers the car has registered so far, and fuel system (petrol, diesel or LPG). Zoomo also offers users car inspection services, handles loan, insurance & other paperwork, and provides expert advice on call.
Currently, listing on the site is free and Zoomo doesn’t charge a transaction fee either. Zoomo co-founder & CEO Kumar told ET that they might look at vehicle financing and other such services to monetize the platform at a later date. He also mentioned that the startup receives about 150 listing requests on a daily basis, at present.
Competition: There are several sites that facilitate buying & selling of used cars, including Tiger Global backed CarTrade.com, Sequoia Capital backed CarDekho.com, Axel Springer & India Today group owned Carwale.com, and Times Group’s Zigwheels.com among others. Horizontal classifieds sites like OLX & Quikr also list used cars. However, all these sites allow individuals and dealers to list cars, unlike Zoomo which is a P2P platform.