IMotorbike, a Malaysia-based e-commerce platform for preowned motorcycles, has announced that it has raised MYR12 million ($2.6 million) in its Series A funding round led by Gobi Partners and Ondine Capital.

The funding round also saw returning participation from Penjana Kapital, The Hive Southeast Asia, 500 Global, SOSV’s Orbit Startup; new investors Goodwater Capital, Seedstars International Ventures and Permodalan Negeri Selangor Berhad (PNSB); as well as other institutional venture capitalists, iMotorbike said in a statement on Tuesday.

The Series A funds will be used to strengthen the iMotorbike operations in Malaysia and Vietnam, including opening more inspection centers in both countries; as well as for technology and talent investments.

IMotorbike Co-Founder and Chief Executive Officer Gil Carmo said the successful fundraise is a testament to the business of the motor trading platform.

“This infusion of capital will be instrumental in fueling the next phase of growth for the company, as we spearhead the transition towards a circular economy in the two-wheeler market,” he said.

According to him, the firm will expand its efforts to promote sustainability, create a robust ecosystem for the reusing of motorcycles, parts and accessories to reshape the future of mobility.

“We are customer-obsessed. We drive our strategy by improving customer experience in every aspect of our business, hence this is why we are opening more inspection centers,

“The value of what we are building is showing from the good customer feedback we get on a daily basis,” he added.

IMotorbike, which enables users to buy and sell preowned motorcycles on a secure marketplace, was founded by entrepreneurs Gil Carmo and Sharmeen Looi to address the gap in the two wheeler market.

The platform has generated over 2,500 transactions with total revenue of more than MYR 16 million ($3.5 million).

With connections of 5,000 dealers across Malaysia and Vietnam, it also provides financing option, insurance and road tax for users’ convenience.

Gobi Partners co-founder and chairperson, Thomas Tsao, has a positive outlook on the potential for substantial growth in iMotorbike given the size of the Southeast Asian market.

He opined that iMotorbike serves as an excellent example of a circular economy startup, with the potential to become a major player in the two-wheeler industry.

“In Malaysia alone, there are 1:1 motorcycles for every car, and this ratio increases to 6.5 times in Indonesia and a staggering 14.2 times in Vietnam,

“This represents a combined market size of 216 million motorcycles which iMotorbike is poised to tap into,” he said.

Meanwhile, Ondine Capital founding partner Randolph Hsu said its latest investment into iMotorbike aligns perfectly with its focus to fund Southeast Asian startups with consumer technology.

“We are always on the lookout for promising startups with a unique value proposition,

“iMotorbike has stood out with its market traction, stemming from its mission to improve the preloved motorbike market,” he said.

To date, iMotorbike has secured a total of MYR 19.3 million ($4.2 million) since its pre-seed funding round.

With rising inflation, higher cost of living amid surging fuel prices, iMotorbike expects to see more people turning to motorcycle as a mode of transportation and as a means of generating income.

As two-wheelers remain a viable, low-maintenance option for many commuters and e-commerce riders, iMotorbike opined that the firm is well-positioned to capitalize on this immense potential.

Entering the next exciting phase of growth, iMotorbike said it is poised to continue revolutionizing the preowned motorcycle landscape.

The startup said it remains committed to its vision of tackling four pain points of buying and selling preowned motorcycle reliability, transparency, market fragmentation and time consumption.

Southeast Asia’s used motorcycle platform iMotorbike targets $20M revenue in 2023