Speedioo raises ₹10 crore in seed funding round led by Atomic Capital

Speedioo, a consumer technology platform operating in the used two-wheeler segment, has raised ₹10 crore in a seed funding round led by Atomic Capital. The company stated that the investment will be used to develop its AI-enabled technology platform, expand distribution in key markets, strengthen partnerships with OEMs, and scale its dealer and retail network. It also plans to expand its senior leadership team.

According to the company, the technology investments will focus on integrating procurement, price discovery, vehicle assessment, and pricing processes within its platform using AI-based tools. Speedioo plans to expand its distribution network into three to four cities and increase its retail presence through a franchise-led model.

Founded by Sagar Potphode and Ajit Deshmukh, both of whom previously worked at CredR and Rentomojo, Speedioo reported a five-fold increase in topline over the past 12 months while remaining EBITDA and cash-flow positive.

Speedioo stated that it has crossed ₹30 crore in gross merchandise value (GMV) and sold more than 4,000 vehicles over the last year. The company currently works with more than 200 dealer partners across Bengaluru, Mumbai, and Pune, and plans to expand this network over the coming year. It has also partnered with EV brands for exchange programmes.

Speedioo said it is targeting annual recurring revenue (ARR) of more than ₹100 crore over the next 12 to 18 months while expanding into new markets. Its planned initiatives include diversifying sourcing channels, strengthening OEM partnerships, increasing dealer penetration, introducing financing and warranty products, opening additional retail stores, and entering new Tier 1, Tier 2, Tier 3, and Tier 4 markets.

Commenting on the development, Sagar Potphode, Co-Founder and CEO of Speedioo, said the company aims to build a technology-driven platform for used two-wheelers and address issues related to trust, transparency, and customer experience in the segment. He added that the company sees growth opportunities across Tier 2, Tier 3, and Tier 4 markets.

Apoorv Gautam, Founder and Managing Partner at Atomic Capital, said “We are excited about the megatrends shaping India’s used two-wheeler category. 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. 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. We have deep respect for the way Sagar and Ajit have built Speedioo: bootstrapped, capital-efficient, with strong unit economics and overall profitability from very early on. Their DNA aligns closely with our playbook of not throwing capital at the problem, but building sustainable businesses that scale exponentially. We also have a sharp point of view on value creation in this category, across technology platform building, distribution expansion, and a deliberate focus on the most lucrative segments. We are excited to partner with the Speedioo team on this journey.”

The company stated that its expansion strategy is based on supply, demand, and channel development. It plans to increase sourcing from interstate and intracity markets, participate in the EV resale segment, expand its dealer network in existing markets, and open retail stores in current and new cities during the financial year.

The company estimates that India’s used two-wheeler market is worth approximately $28 billion and accounts for nearly 1.5 times the volume of the new two-wheeler market. It stated that a large share of the market remains unorganised.

Also read: Electric scooter resale woes: One of the major factors behind low market acceptance