- Bikes24x7 is a hybrid platform (offline showrooms + online website) which enables customers to buy or sell pre-owned two-wheelers. - We provide a complete solution for buying or selling a pre-owned vehicle which includes RTO services, financial aid, insurance, post-sales servicing, accessories and spare-parts. - Brains behind this company has an experience of more than 30 years in this domain and is one of the Founding Fathers of the used two-wheeler industry in India. - Bikes24x7 has 2 outlets which serve as our showrooms and workshops in Pune, Maharashtra, India.
We are at the MVP stage. We have already started our offline operations from 30th August, 2020, and since then, we have generated over Rs. 2.3 Cr in revenue ($315,500) (till 31st March, 2021) We have sold over 450 vehicles from August 30th 2020 to March 31st 2021, with bare minimum marketing and advertising. Our website is launching on 20th July, 2021, which includes buying, selling and RTO services as of now. We are currently operating from 2 showrooms and very soon we will begin with our franchises all over the city. We want to capture all of Pune by the end of 2021, and also start the expansion in other cities (Maharashtra expansion).
Target audience: - We have 2 early adopters as our primary target audience. - The blue-collar workers and the mobile workforce/gen z.
BLUE COLLAR WORKERS
Age Group: 30 – 37
Income: ₹10,000 - ₹35,000
Behavioural Style: No faith in online market yet (risk averse). Prefer checking everything in person. Require loans more than anyone else. Primarily for our offline showrooms
Mobile workforce/ gen z
Age Group: 22 - 27
Income: ₹30,000 - ₹70,000
Behavioural Style: Spend a lot of time online (8-10 hours). Use social media daily. Prefer buying/selling online, as it saves energy and time.
- We are competing in the pre-owned two-wheeler market, which is a highly unorganised market. - It is the retail automotive sector. - Pre-owned 2 wheeler industry is a brick and mortar industry, most of these transaction are done face-to-face or over websites like OLX (C2C), which involves constant negotiations as there is no standard pricing available for used vehicle.
Problem or Opportunity
1. Lack of supply 2. Lack of trust 3. Social stigma 4. Inconvenience
Seller Problems: 1. Lack of standardized pricing 2. Time consuming 3. Limited access to buyers 4. Extensive band with requirements 5. Manual, disjointed and broken process 6. Dependencies on brokers/ agents.
The opportunity is that there is no platform in the market which provided end-to-end services when it comes to buying and selling of pre-owned two-wheelers and this is exactly what we plan on tackling.
Solution (product or service)
- Bikes24x7 aims to be "Aam Aadmi ki 2-wheeler need“. - We have created a phygital (online + offline) platform which provides a hassle free user experience to buy or sell used vehicles from the comfort of their homes or by visiting our best in - class showrooms. - Our proprietary Bike Value Calculator and the pricing engine are two innovative solutions which are standardinsing purchase and selling price of any pre-owned two-wheeler. - We provide RTO, financial and insurance services. - Virtual Showroom with detailed information of the vehicles in our catalogue.
Value Proposition: 1. Time Saving (via Home Services) 2. Build Trust (via readily available customer services) 3. Transparency (via detailed bike reporting) 4. Budget Friendly (we keep bikes for all budgets) 5. Convenience (Showroom / Home Services / Online) 6. Unique Experience (Best in class showroom experience)
This is the market share in Pune (because we are currently based in Pune): 1. Dealerships (40%) 2. OLX and Quikr (35%) 3. Credr 4. Droom 5. Bikewale 6. BikeDekho (3,4,5,6 - 10%) 7. Unconventional means (15%) -
Advantages or differentiators
We have intellectual property, i.e. Our Bike Value Calculator (BVC), it’s a proprietary solution which provides an approximate value of a vehicle based on the age, mileage and number of previous owners of the vehicle. This calculator generates the approximate value by analyzing previous sales of similar vehicles and an algorithm which drives the analysis and trains the pricing engine for better output.
Competitive Advantages: 1. Exclusive home RTO services for those who don't buy or sell with us. 2. Financial services like loans 3. Insurance 4. Virtual Showroom with detailed information of the vehicles in our catalog. 5. Only pre-owned 2 wheeler platform to provide accessories, extended warranty, exchange with new and EV bikes and bike servicing all under 1 roof. 6. Exclusive tie up with SEPAL, a unique bike canopy which is one of a kind in the world.
Our current revenue streams includes the following: - Buying of used two-wheeler - Selling of used two-wheeler - Financing - RTO Services - 24x7 Roadside Assistance
Our plan to grow this business includes adding more revenue streams over time, following are some of the examples: - New bikes module (eg. tie-ups with brand dealerships) - Exchange of used with used, used with new, used with electric - Leasing of used and electric - Accessories and spare parts - Fuel Management System (IoT) - Exclusive Tie-Ups (eg. SEPAL)
All these revenue streams will be used to get the user to buy into the Bikes24x7 platform, where they will perform all two-wheeler related transactions. We are an asset strong company (avg. Turn-Around Time: 15-20 days) This allows us to own and refurbish the assets, thus allowing for Quality Control and user trust.""
97% of the business is buying and selling the two-wheelers and 3% strategic partnerships
Our business model is NOT of an aggregator. We actually buy the two-wheelers, completely refurbish them, and then sell them to other sellers.
Our channels of sale are: - Walk-ins - Website - Social Media - Online ads
Metrics are: - ROI - ROAS - Number of two-wheelers bought and sold - Number of RTO applications - Number of insurance and finance options - Website visits, clicks, average time spent
Money will be spent on
The investment money will be spent on:
20% in technology 33% in inventory 20% in marketing 27% in infrastructure
Offer for investor
We are asking for Rs. 6 Crore ($810,000) for 10% of the company.
There are 2 main risks involved in this business: - 1. Procurement of 2 wheelers: - This is the main risk, because even though there is very high demand, there is very little supply. - The way to ace this business is to target the procurement of 2W. This is where the competitors are failing, thus, this is where we need to pick up.
2. Lack of financing options: - The people who need second hand two-wheelers the most, is the blue collar workers. But, they can't pay for the vehicle at the same time. - At the moment, there are very few companies in India which give loans to the *used* two-wheeler segment. - Due to the pandemic, the CIBIL score of these blue collar workers has fallen very low, due to which, they can't be granted loans. - The risk is that if there aren't more ways to provide loans to these people, we'll be losing out on a lot of customers.
Incubation/Acceleration programs accomplishment
Startup Venture Nursery by NEN and Wadhwani Foundation
Won the competition and other awards
Entrepreneur's Organization - Runner Up IIT Bombay's Eureka 2021