Mundimoto, an online motorcycle buying and selling start-up, has raised $22.6 million (€20 million) to expand its platform beyond its home country of Spain and into Europe, starting with Italy and the Netherlands. The company plans to hire 50 engineers and 250 new employees to advance the technology product and support international expansion.
The round was led by the international investment fund P101, as well as Maniv Mobility and Autotech Ventures.
Mundimoto comes on the scene as a slew of used car dealerships pop up, such as Carma in Australia, Cars24 in India, Clutch in Canada and Vroom in the US. Then there’s Upway, a French startup building a marketplace for used electric bicycles, which launched a seed round last November. However, not so many startups have sprung up to provide the same type of service for motorcycles.
That may be because car ownership is still much more popular than motorcycle ownership, but there is clearly a market for used motorcycles and mopeds. Since its inception in 2019, the platform has sold 4,000 vehicles and revenue has increased fivefold, from €1 million in 2019 to €15 million in 2021, Mundimoto said. While 30% of Mundimoto’s national turnover comes from Catalonia and 70% from the rest of Spain, 15% of the company’s total turnover is already international.
“While much attention has been paid to auto marketplaces, motorcycles represent a very significant opportunity that has received less focused attention,” Daniel Hoffer, managing director at Autotech Ventures, said in a statement. “Mundimoto has shown impressive traction, innovation and operational excellence in tackling this overlooked vertical position.”
Like many of its counterparts in the world of online used car dealerships, Mundimoto offers a one-stop shop service. It provides facilities for sellers such as online appraisal, secure and direct payment to the user account, pick-up of the vehicle at home and free change of ownership. The company has a team dedicated to overhauling its vehicles, buying an average of 1,000 per month, according to Mundimoto. The startup too delivers vehicles to the buyer’s doorstep and offers financing and insurance options, Nate Jaret, a partner at Maniv Mobility, told TechCrunch.
“The company simplifies a highly fragmented two-wheeler retail market characterized by small dealers with limited inventory, huge price differentials, poor customer journey, poor support services such as financing and insurance, limited warranty options, and P2P advertising portals that are difficult to navigate and manage. are to offer. buyers limited options of uncertain provenance,” said Jaret.