According to its consolidated financial statements with the Registrar of Companies (RoC), Bike Bazaar’s gross revenue grew 76.5% to Rs 149.72 crore in FY22 from Rs 84.84 crore in FY21, with most of its revenue coming from interest received on loans. Sales of used two-wheelers contributed just 7.2% of the collections. The company also charges processing and servicing fees on disbursement of loans and collection from this vertical jumped 2X to Rs 31.72 crore in FY22 from Rs 15.5 crore in FY21. Bike Bazaar managed to keep expenses in check, and its losses grew only 17.7% to Rs 55.3 crore during FY22 from Rs 47 crore in FY21. The firm purchased pre-owned vehicles of around Rs 10 crores during the year while the cost of advertising-promotion and call center-information technology cost grew 512% and 30.1% respectively. Bike Bazaar’s ROCE and EBITDA margin stood at -26.63% and -34.60% during FY22, and it spent Rs 1.38 to earn a single rupee.According to Bike Bazaar’s consolidated financial statements with the Registrar of Companies (RoC), the company purchased pre-owned vehicles worth approximately 10 crores during FY22. Additionally, the cost of advertising-promotion and call center-information technology cost increased by 512% and 30.1% respectively to Rs 7.17 crore and Rs 7.69 crore. Despite this increase in expenses, Bike Bazaar managed to control its costs and keep its losses at a moderate level. The company’s losses grew only 17.7% to Rs 55.3 crore during FY22 from Rs 47 crore in FY21.
The pre-owned two-wheeler market in India is still in its early stages, companies like Bike Bazaar will have to navigate various challenges and experiment with different strategies to achieve success. They will need to figure out what works and what doesn’t work in this market, and be agile enough to adapt quickly to changing market conditions. Ultimately, their success will depend on their ability to scale their business while maintaining profitability, and providing value to their customers.