SheerDrive Secures Investment from Inflection Point Ventures to Revolutionize India’s Used-Car Market
- ByStartupStory | June 8, 2023
Sheerdrive, a pioneering digital platform in Mumbai specializing in AI/ML for pre-owned vehicles, has announced an undisclosed investment from Inflection Point Ventures (IPV), a renowned angel investment group. This investment comes as an addition to the existing group of investors, which includes prominent names like Prajit Nanu, the Co-Founder and CEO of NIUM, a multibillion-dollar fintech company, as well as JITO Angel Network, INSEAD Angels India, Group Landmark, Volrado Venture Fund, and others. The infusion of funds from IPV highlights the growing confidence in Sheerdrive’s innovative approach and signifies a promising future for the company.
The recent investment by Inflection Point Ventures (IPV) in SheerDrive serves as a validation of the company’s innovative approach and ambitious business goals in the used-car industry. With this investment, SheerDrive is well-positioned to tap into the vast potential of the Indian used-vehicle market and provide crucial support to new car dealerships in boosting their revenue. As SheerDrive continues to expand and develop its offerings, the company is poised for growth and success in the industry.
“With a focus on innovation and an in-depth understanding of the market, SheerDrive is disrupting the pre-owned car market in India. 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. The new funding will enable us to expand into new geographies and enhance the tech stack for new car dealerships, unlocking significant value in used car transactions.,” said Ravi Mehra, CEO and Co-founder of SheerDrive.
Mitesh Shah, Co-Founder, Inflection Point Ventures (IPV) said,“Over the last few years the market for pre owned cars has witnessed a sharp rise. With Sheerdrives 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.”
Inflection Point Ventures (IPV) actively seeks investments that align with its values, and SheerDrive’s innovative approach to the used-car market perfectly aligns with this vision. IPV recognizes the potential of SheerDrive’s technology to revolutionize the industry. The investment in SheerDrive is a testament to IPV’s confidence in the company’s team and their ability to catalyze the growth of India’s used-car market.
SheerDrive, established in April 2020, is dedicated to bringing about a revolution in the realm of efficient used-vehicle programs by leveraging technology-driven innovative solutions. The introduction of their cutting-edge Unique Digital Platform “VIAR,” powered by automation, AI, and ML, empowers used car dealers to optimize their market potential and transform it into tangible business outcomes. In a recent announcement, SheerDrive revealed its acquisition of Superbids.in, a prominent B2B auction platform specializing in banking repossessed and Insurance Salvage.
SheerDrive is set to launch its services in 19 cities, enabling transactions of used cars valued at more than $40 million. With a current growth rate of 41% quarter-on-quarter, the company has achieved positive unit economics. SheerDrive has set a visionary goal of achieving a Gross Merchandise Value Annual Recurring Revenue (GMV ARR) of $500 million, facilitating transactions for over 100,000 vehicles across 35 cities by the fiscal year 2025.
SheerDrive’s ambitious expansion plans align with the thriving used-car market in India, which is anticipated to experience a Compound Annual Growth Rate (CAGR) of 19.5% until FY 2026-2027, as reported by IndianBlueBook. The recent funding round positions SheerDrive favorably to stimulate further growth and consolidation within the used car industry, while delivering enhanced value to both customers and investors. This investment will fuel SheerDrive’s accelerated growth and enable the expansion of its services nationwide. By offering a comprehensive range of digital tools and API integrations tailored for new car dealerships and OEMs, SheerDrive effectively addresses supply and aggregation challenges while ensuring residual value protection.
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