SheerDrive, a Mumbai-based startup that offers a digital AI/ML platform for pre-owned vehicles, has raised an undisclosed amount in a Pre-Series A funding round. The round was led by JITO Angel Network, and featured participation from INSEAD Angels, high net worth individuals, and existing investors including Group Landmark, Volrado Venture Fund, and Prajit Nanu, Co-Founder and CEO at NIUM. The platform provides all the necessary tools for New Car Dealerships (NCDs) to effectively manage their used vehicle programs.
The funding will be used to fuel expansion and boost growth for SheerDrive in the Indian pre-owned car market. Additionally, the funds will be directed towards advancing the company’s AI/ML-based intelligent VIAR technology platform to its next level of functionality.
“SheerDrive has a passionate and highly experienced team with in-depth industry experience, It perfectly syncs with the business aspects we at JITO look for. Pre-owned cars will play a significant role in driving personal mobility and we strongly believe that automotive dealerships would see a significant disruption over the medium to long term driven by a few critical factors such as shifting customer preferences and digital disruptions across the automotive value chain. This is where SheerDrive can really make a difference, and we are excited to be part of the growth journey of SheerDrive,” said Pooja Mehta, Chief Investment Officer, JITO Angel Network
“SheerDrive aims to disrupt the pre-owned car market in India, backed by innovation and in-depth market understanding, to create value not only for the New Car Dealers but also for the customers by alleviating the legacy issues of convenience, transparency, and pricing in the industry. SheerDrive is committed to accelerating pre-owned transactions backed by our pioneering VIAR technology platform. In addition, the funding will help us drive into new geographies and usher in the much-needed reform pertinent for the New Car Dealerships who are vying to grab the share of the pie in this developing market,” said Ravi Mehra, the CEO, and Co-founder of SheerDrive.
The company is currently active in 19 cities and has facilitated used-car transactions totaling over USD 40 million. SheerDrive is showing a 41% quarter-over-quarter growth this year and is operating at a profit. The company’s goal is to reach a GMV ARR of $500 million and complete transactions for more than 100,000 vehicles in 35 cities by the end of fiscal year 2025.
The used-car market in India, valued at $23 billion in FY 2021-2022, is expected to experience strong growth in the coming years, according to IndianBlueBook. The market is projected to increase at a CAGR of 19.5% until FY 2026-2027, driven by a variety of factors including shorter vehicle replacement cycles, growing access to financing for used cars, shortages of semiconductor chips for new vehicles, and untapped potential in the passenger vehicle market.
