Bengaluru: Zoomo, the Bengaluru based used cars marketplace, owned and operated by YoungMonk Technologies Pvt. Ltd. raises $5 million in its Series A funding round from SAIF Partners. The company will utilize the funds to develop their technology and to hire talent to increase their workforce. The company is also planning to expand its areas of operation to seven new cities. Previously the company also had raised $1 million in seed round of funding from SAIF Partners.
Founded in 2014 by IITians Arnav Kumar, Himangshu Hazarika and Aniket Behera, Zoomo enables the users to list their cars for free and does not charge any commission on transactions. Instead, it cuts out intermediaries and claims to offer the best price to buyers and sellers. It earns its revenue by charging the users for the value-added services like processing paperwork, advance bookings, bank loans, insurance and warranty.
The buyers can access the website, search for their desired car and price range, while also customize the search results according to their requirements. They can also request for seller details and quality report of the vehicle. To get a vehicle listed on the platform, the seller has to take his vehicle through a thorough inspection by the Zoomo team, who claim to run a 150-point checkup for every car before being listed. The company claims to have sold 300 cars in June and aims to sell 1000 cars by October. Zoomo currently offers its services in Bengaluru and Mumbai, and is planning to launch its services in Delhi, Pune, Hyderabad and Chandigarh by the year end.