Speedioo operates on a full-stack business-to-business (B2B) model, through which it sources, refurbishes, and distributes used two-wheelers through dealer partners.
How the funding will be used
With the fresh capital, the company is looking to expand into a business-to-consumer (B2C) model, invest in an AI-native tech stack, and integrate AI into its value chain across procurement, vehicle assessment, price discovery, and resale pricing, said co-founder and CEO Sagar Potphode.
The company also plans to expand its senior leadership team as it scales up operations, deepens partnerships with original equipment manufacturers (OEMs), and expands its dealer network.
Expansion plans
Currently operational in Pune, Mumbai, and Bengaluru, the startup plans to enter new markets, including Delhi-NCR and Hyderabad. It is also looking to expand beyond Tier 1 markets, to address what it says is a significant supply-demand gap in the used two-wheeler segment. There is a major gap in Tier 2, 3, and 4 towns in India, where people aspire to have personal mobility, but affordability remains a challenge, Potphode said.
Early-stage investor Atomic Capital sees a significant opportunity in a market that is estimated to be worth roughly $28 billion and remains more than 95% unorganised. “The used market is roughly 1.5x the size of the new two-wheeler market, and as Indian consumers grow more aspirational, premiumization within the second-hand category is becoming a defining theme,” said Apoorv Gautam, founder and managing partner.
“Despite the scale of the opportunity, there is no clear winner today, no ‘Spinny for bikes’, and the rapid electrification of two-wheelers opens up an entirely new whitespace for organised, tech-led players,” Gautam added.
Operational performance
Founded by former CredR and Rentomojo operators Potphode and Ajit Deshmukh in October 2024, Speedioo has recorded more than fivefold growth over the past year while remaining EBITDA and cash-flow positive.
The startup has crossed Rs 30 crore in gross merchandise value (GMV), sold more than 4,000 vehicles, and is targeting over Rs 100 crore in annual recurring revenue over the next 12 to 18 months.
“In this category, many of the players are not EBITDA positive at scale despite being in the market for almost a decade. As we get into the B2C model, at least for one year, I think there will be a healthy burn, but we intend to build a very profitable company,” Potphode added.