MotorExchange, an online marketplace for used vehicles, has raised a second round of funding to expand its workforce and increase direct to consumer services.
The year-old start-up has raised about $5 million in a round, led by early stage investor Epiphany Ventures with participation from existing investor Canaan Partners.
MotorExchange provides a technology platform for transacting used vehicles. It brings together qualified sellers and volume buyers of used vehicles, including banks, corporates, leasing companies and automotive dealerships.
MotorExchange is founded by Vinay Sanghi, former chief executive of Mahindra First Choice, the start-up also has Rajan Mehra, venture advisor at Clearstone Venture Advisors and former India head, e-Bay as a founder-director.
MotorExchange charges buyers a commission fee and provides the services to sellers for free. MotorExchange has seller service office in Mumbai and Chennai. It has raised Series-A funding from Canaan Partners in December 2009.
Second hand automobile market is approximately 10,000 Cr in size and very fragmented in spite the presence of players like TrueValue from Maruti-Suzuki, Mahindra First Choice etc. Motorexchange aims to become #1 player in the second hand automobile market. On the institutional front, MotorExchange competes with eBay India’s B2B Motors business, Autoexchange.in and eDiig.in are others in this space.
Motorexchange has earleir raised 1st round of investment from Canaan Partners in dec 2009.