Bangalore-based used two-wheeler consumer brand, CredR, has firmed up plans to invest $15 million (~INR 110 crore) in its used two-wheeler business in the upcoming financial year. With this investment, the company plans to open 50 CredR showrooms offering Gold Standard used two-wheelers in FY 22-23 and over 100 showrooms by 2024.
CredR has already expanded operations from its initial six markets of Bangalore, Pune, Jaipur, Bhilwara, Chittorgarh and Delhi to six new markets, namely Ahmedabad, Rajkot, Vadodara, Gurgaon and Faridabad. The target is to be present in the top 12 two-wheeler markets in India. The markets will be a mix of urban, tier 2 and tier 3 towns.
In 2021, CredR saw a 200% rise in used 2-Wheelers transactions, with revenue bouncing back to pre-COVID levels by mid-2021 itself. At the time, when commuters were grappling with a lack of safe and economical travel options, the company rapidly scaled its supply chain to build inventory at all its showrooms to meet the demand in the entry-level and mid-price used two-wheeler segments. The target for 2022 is to achieve 30,000+ transactions.
CredR witnessed a huge pent-up demand, of almost 400% from the lockdown period and saw an upward trend even during the festive season and year-end sales. Due to the clampdown on public transportation, people have chosen to opt for private mobility. They are still afraid to venture out into crowded areas even with an uptick in vaccination and the situation coming back to normalcy. Moreover, due to the recent rise in petrol prices, sentiments have shifted away from cars to high mileage used 2 wheelers.
To support this growth, CredR will be looking to increase their team to 2x the current size in the coming fiscal year and also focus on making the entire customer flow tech-driven. The brand has also planned to invest heavily in OOH and digital media campaigns and bring a noted celebrity endorser onboard.
Commenting on this growth, Sasidhar Nandigam, CEO and Co-founder, CredR said, “The pandemic was an unexpected boon to our business. The break-in business allowed us to reposition and strategically plan the next few stages of our growth trajectory. The post-covid response has been so massive that we have decided to go all out with our expansion plans, keeping profitability and customer satisfaction as paramount objectives.”
He further stated, “The way forward is to keep building supply entryways into various cities, with refurbishment and showroom setups to follow. Supply helps us build a strong foothold into the market which drives our pricing and demand mapping a great deal.”