Startup Mantra: Buying & selling of used bikes made easy with 2WheelR
Khyati Khandelwal launched 2WheelR, a second-hand two-wheeler business, during the Covid-19 lockdown, now thriving with four showrooms and 75 monthly sales.
After completing her BTech exams, Khyati Khandelwal found herself confined at home due to the Covid-19 lockdown. Her father’s small second-hand two-wheeler business was also forced to shut down, adding to the challenges. However, instead of being disheartened, Khyati’s entrepreneurial spirit kicked in, helping her find opportunities even when the world seemed locked behind closed doors.
Khyati started 2WheelR, a second-hand two-wheeler business, along with her sister Disha and father Krishi, in April 2020 and formally registered the company in August of the same year.
Says she, “The second-hand two-wheeler business is completely unstructured and disorganised. If you go to buy a second-hand bike you go to certain areas where there are these dealers. The bikes are simply parked, and you can decide which one you want to buy. There is not much information about the vehicle’s history, no proper invoice, you are simply handed a pen-and-paper note, you must figure out your transfer yourself with the seller and in some cases, I noticed they did not even hand over the RC card.”
How it started
The sister duo created a basic online platform that would give information about the second-hand two-wheelers that were available and posted this online. Says she, “Because of Covid, mobility was restricted, and two-wheelers seemed like an easy way to commute short distances. So, it turned out that many people wanted to buy a second-hand bike. There were times when one could move out. At that opportune time, we got a developer and built a basic online platform to take bookings for second-hand bikes. There was a significant interest from people wanting to buy bikes and not being able to go out and get them.”
But nor could Khyati get out to the shop and get the bike? “Yes, that’s true. But when they would allow people out for an hour or so we would get the bike from our shop or if the brand a customer wanted was not with us then we would get it through our network and deliver it to them. This too was initially done in the pen-and-paper method. But because it was online it helped people pick a bike without going out and make a choice.”
And before the results of her BTech exam were out Khyati was working excitedly on sourcing second-hand bikes for people who wanted them. What started on a lark during the lockdown was now taking a serious turn.
“I discovered that people wanted to buy second-hand bikes in an easy and reliable way. Even though in those early days I too was doing the pen-and-paper way of selling, I think what worked was that people could pick out a bike without getting out of their homes. What I was doing was spurred by the lockdown, but it turned out that this was exactly what was the need of the hour.” She sold 12 bikes in this period. That was proof that there was a need in the market.
Initial steps
When the markets opened after the first wave, Khyati and her sister Disha persuaded their father, Krishi to rent out a showroom for them. “We got a 5,000 sq ft showroom in Kharadi and got just 20 bikes. It looked so frugal. But we deliberately picked Kharadi because the closest second-hand bike market for people living there was in Rasta Peth which was about 18 km away. In Kharadi there wasn’t a single second-hand bike dealer. Moreover, it had so many IT companies and those employees needed bikes.” But her website was doing the job of sales. Despite the ‘frugality’ at the showroom, it worked. Even though she had just 20 bikes on display she managed to sell 35. In the second month, she sold 50 bikes and maintained an inventory of about 55 to 70 bikes
Building a scalable, tech-driven ecosystem
The second lockdown from March to May 2021 didn’t slow them down. Instead, it became a period of strategic transformation. “By then, we had six months of experience selling second-hand vehicles. We realised that having just a basic website wasn’t enough,” says Khyati.
“Under my father’s guidance, we created SOPs for buying and selling vehicles. We built a robust digital system that accounted for every step in the procurement and sales process. We sat with developers and guided them through exactly what we needed.”
“All this was done in-house. We sat with the developers and directed them on the what and how of our business.”
The digital process
“When a customer picks a bike that he selects from our online platform, he knows that the bike has been checked thoroughly. It’s ownership history, its mechanical status, everything. In fact, we also do a little ritual when a person buys a secondhand vehicle from us. As they do for four-wheelers, we break a coconut, put a garland around the bikes and take pictures with the new owners whilst delivering it. Much like it is done with a brand-new bike. For the customer, it is a meaningful purchase, and we make that moment matter.
“Besides this we do the transfer of the vehicle free of cost. It costs us ₹2,500 to transfer a vehicle’s ownership and one has to go to the RTO office, but our customers need not. We take care of that as well. We offer a breakdown service, do insurance, in fact everything that’s mandatory and more for our customer.”
For the seller, Khyati’s 2WheelR will go over to their place and inspect the bike within 24 hours of receiving a call. “In 20 minutes, our team does a complete analysis of the bike, and the condition it is in and offers a quote. If the seller is happy with our quote, we do the verification of the ownership, bank statement, Adhaar etc. and in an hour the money is transferred to his account. From there on we take the bike get it refurbished and put it up for sale online and offline as well.”
Why this works
The ease and convenience of buying and selling is what works according to Khyati. “Also, there is reliability. Both the seller and the buyer know what they are getting, everything is very transparent. The paperwork is infallible. We provide all the information about a bike, its ownership history, whether it’s been in an accident, what problems it has had and so on.
“Besides this we give our customer a proper digitised invoice. It bears our stamp, and it has all the data needed for anyone to make a decision to put their hard-earned money on it. And then we offer other services like transfer certificate, break down facility and so on. Any customer can rest assured when she buys from us.”
Market dynamics
The second-hand two-wheeler market is largely fragmented, with most platforms falling into one of three categories:
Large listing platforms – These platforms have extensive inventories but lack proper verification of bikes, buyers, and sellers. Transactions often involve direct buyer-seller negotiations, leading to risks like fraud, hidden defects, and incomplete paperwork.
Certified vehicle platforms – Some platforms offer certified bikes with quality checks, but their inventory is limited, making it difficult for buyers to find the exact model they need.
Price transparency platforms – A few players provide clear pricing and detailed bike information, but their markups are significantly high, making it less cost-effective for buyers.
2WheelR plans to beat this with its end-to-end digital experience. Says Khyati, “Unlike traditional platforms, we combine digital convenience with physical touchpoints, ensuring a seamless and structured buying and selling process.
The story so far
What started during the pandemic has now grown to four showrooms and a monthly sale of around 75 bikes. Says Khyati, “We have our outlets at Hinjewadi, Rasta Peth, Somwar Peth and Kharadi. As of now, we have an average inventory of 300 bikes at any given time. Ever since we got completely digitised, we have seen a growth of 30% in our business, an increase in the net margins per bike by three to four per cent and referrals grew to 18%. Because of this digitization, we didn’t have to spend on marketing organically.
Initially, they invested ₹25 lakh to begin with and did a first round of investment from HNIs who do not wish to reveal the amount. They also took a debt fund loan of ₹1.5 crore towards working capital.
“As of now we have five digital designers, 15 tech people and 35 people who look into operations and of course the three of us founders.
The future
We plan to scale up our certified and consumer-to-consumer (C2C) model. We also want to expand our inventory and provide AI-powered pricing insights. We want to offer a full stack ownership solution from insurance to maintenance to resale tracking.
In Phase 1 we plan on deep penetration in Tier 1 cities. In Phase 2 we will expand to Tier 2 & 3 cities, where demand is surging and in Phase 3, we aim to seek out Cross-border opportunities in Southeast Asia.” If the history is any indication, looks like 2WheelR will surely meet its target.
