TMT
By
Eight Roads-backed CredR raises venture debt from Stride Ventures
Photo Credit: 123RF.com

Mumbai-based refurbished two-wheeler reseller CredR on Wednesday said it has raised venture debt funding from Stride Ventures.

Existing investors Eight Roads Ventures, GrowthStory and AngelList also participated in the funding round.

The startup said in a statement it will use the funds to finance the purchase of automobiles. However, it did not reveal the financial details of the transaction.

CredR, which is operated by Incredible Technologies Pvt. Ltd, was founded in 2014 by Nikhil Jain, Nitin Mittal, and Sumit Chhazed. All three founders are alumni of IIT-Bombay.

The company says it is focused on creating a niche in the unorganised used motorcycles’ segment, and that it seeks to address pain points such as poor customer experience, poor vehicular quality, lack of standard pricing and non-existent after-sales service.

CredR says its platform provides a formalized system for used motorcycles dealers and auto original equipment manufacturers. Customers can choose the vehicles they want to buy on their website, and complete their transaction through one of the company’s showrooms.

The venture debt funding comes just months after CredR had raised Rs 38 crore in a funding round led by impact investor Omidyar Network India in December last year.  

Earlier, in 2015, CredR raised seed funding from a set of angel investors including serial entrepreneur K Ganesh, Snapdeal co-founders Kunal Bahl and Rohit Bansal and Amit Agarwal of Amazon.

The same year, it raised $15 million in Series A round of funding from Eight Roads Ventures.

Separately, Ishpreet Gandhi, managing partner at Stride Ventures, said CredR is tapping into a market with enormous potential by leveraging technology-enabled solutions by ensuring transparency and affordability without compromising on quality.

Stride Ventures had marked the first close of its debut venture debt fund at Rs 100 crore ($14 million) in December last year.

Its first investment was in Stellapps Technologies Pvt. Ltd, an Internet of Things (IoT) firm which operates in the dairy segment.

The venture debt fund's sweet spot for investment will be in the range of $1-2 million and, like most venture debt firms, it will be sector-agnostic, Gandhi had told VCCircle earlier.

Stride Ventures had said it plans to invest in 35-40 startups over the next three years.

Leave Your Comment(s)