The vehicle industry in India has come an extended way. According to an IBEF document, the enterprise debts for 7.1% of the united states’s Gross Domestic Product (GDP). The -wheeler section, comprising scooters and bikes, holds 81% of the overall Indian vehicle percentage. This phase is likewise reportedly growing at a CAGR of 9.48%. Though the numbers communicate for themselves, the enterprise nonetheless lags at the back of when it comes to the usage of technology. Bike proprietors still select using roadside garages to get their motors serviced – spending INR 2 hundred-400 for one cross and wasting guy hours and water.
In a tech-savvy international, with the whole lot available on the contact of a button, this technique sounds like medieval torture, does it no longer?
In stark contrast, the United States already has a mechanised automobile and bike cleansing enterprise well worth $5.97 Bn, with extra than 14,414 a success retailers. India is still at the threshold of choosing up in this profitable vertical. And then there's BikeSpa – an Israeli agency – that has also synthetic a prototype cleaning carrier outfit to clean, care and preserve two-wheelers.
Inspired by BikeSpa’s version and product, Arnav Shah and Siddharth Jain sensed an opportunity to capitalise on the market. They determined to fulfill this hole by way of setting out BikeCleanse – which manufactures and operates Automated Motorbike Washing (AMW) machines to clean all forms of motorbikes within 3-four mins on the contact of a button even as recycling as much as ninety five% of the water.
Till date, BikeCleanse has serviced over 1,00,000+ plus bikes and helped save over 50,00,000 litres of water, as claimed by means of the founder.
The Eureka Moment
It all started out while Arnav and Siddharth even as analyzing at Michigan State in the US, would very frequently visit vehicle wash chains to get their automobile washed. On these visits, they observed that the strategies utilized by people there to scrub cars have been very distinctive and convenient. There changed into no manual labour involved for washing vehicles, not like India.
This gave them the impetus to research greater about the marketplace and they realised that the Indian vehicle marketplace had big capability to be exploited. During their studies, they discovered that eighty one% of the Indian vehicle market consisted of two wheelers – a truth corroborated with the aid of IBEF.
Bike washing changed into largely being done at roadside stores, unauthorised garages requiring the patron to watch for 30+ minutes in step with motorcycle, losing one hundred+ ltrs. Of water consistent with motorbike, lacking consumer revel in and many others.
“After we lower back to India in 2011, we had been no longer glad with our function in our family agencies. Therefore we determined to jump into our initial plan of launching a car washing startup,” says Arnav. That’s when they decided to expand a logo aimed toward establishing the u . S .’s scattered motorbike care marketplace.
Naresh Talla, Manoj Geesala: Co-founders of BikeCleanse
They started out their adventure in Hyderabad where they visited a number of service centres and roadside garages and located that those local companies use 50-100 litres of water, per motorbike, and use a hydraulic lifting machine to scrub considerable mud – an costly technique. During their research, they met Naresh Talla and Manoj Geesala, who had been working on the prototype of an Israeli automated motorcycle wash device.
Arnav and Siddharth mentioned their enterprise idea with the two of them and that they each determined to come back onboard as partners. After one whole 12 months of good sized studies, in 2015, the 4 of them cease their respective jobs and officially launched BikeCleanse.
Building An Automated Washing Machine For Two-wheelers
In the first generation, the founders approached permitted and unauthorised dealers to undertake the product and answer, but they sooner or later became their attention to their customers, adopting a B2C model. The prototype AMW device became tested at Hyderabad’s Manjira Mall – to get stay comments from clients.
The machine uses specialised nozzles placed on a conveyor belt as well as at the bottom of the bathing bay. These nozzles wash most people of the bike, together with underneath the mudguard and rims. A factor to maintain in thoughts, the quantity of dust/dust/grease and many others. Might also vary on distinct motorcycles, which demands a few quantity of micro scrubbing prior to selecting the perfect computerized wash cycle. With incorporated water recycling, BikeCleanse’s AMW apparently only consumes 7 litres of water per wash after recycling 95% of the water.
Not best this, they have additionally established a water purification mechanism inside the device to improve the excellent of the water. Their inbuilt mechanism brings the pH (sodium) level right down to 8 in order that it doesn’t harm the motorcycle’s frame.
The AMW is a easy plug and play machine that calls for around a hundred squareft. Of empty space to be mounted at a suitable vicinity. An additional one hundred–200 sq.Ft. Is needed to offer detailing offerings with the specified strength requirement. Apart from this, the gadget requires a water inlet and drainage facility.
BikeCleanse’s six-month pilot venture gained validation, as they served 18-20 motorcycles in keeping with day where they charged INR one hundred fifty for consistent with bike. “We have advanced the generation in house at our facility in Hyderabad. We actually have a patent applied at the Automated Bike Washing process that entails recycling the water used,” says Arnav.
Today, they work on 3 revenue streams within the B2B and B2C segments – the franchise model where they offer the gadget as a part of the franchise to a consumer trying to start a low price commercial enterprise. “As part of the franchise, we also offer area guide (through our agreements with Indian Oil and Hindustan Petroleum), advertising assist, technology aid (thru our franchise management app).”
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Another model is equipment income wherein they promote their machines without delay to carrier centres of Original Equipment Manufacturers (Honda, Hero , TVS and so forth.) who use the machines to carrier their bikes. And, lastly enterprise-owned shops. “In the company-owned model, we own and function our very own BikeCleanse-Instant Motorbike Care stores at prime locations across the u . S ..”
The value of the AMW gadget varies from $10.3K (INR 7 Lakhs)-$13.9K (INR nine Lakhs), depending on the model people opt for. Furthermore, in addition they offer a loose 365 days warranty with an AMC to ensure secure and continuous working. Starting from a capability of two-3 gadgets, nowadays their manufacturing facility has a capability to manufacture forty-60 units a month.
The exciting part is that, aside from the OEMs, the motorbike care enterprise is a highly fragmented industry without a existing single logo recognized for bike care centres throughout India. BikeCleanse targets to organise a part of this fragmented marketplace through motorcycle care shops.
“The computerized machines are able to offer a provider, which is higher than the garages – in phrases of time (three mins Vs 25 mins), cost (INR 90 Vs INR one hundred), environment (7 ltrs Vs 50 litres-one hundred litres of water used), and most importantly places (petrol pumps and department stores, enabling on-the-go services),” he adds.
Location, Location, Location: Setting Up The Manufacturing Unit
Arnav and the team’s initial challenges especially revolved round production capacity and deciding on the proper place to installation their warehouse. They started with a small workshop to test the marketplace with a ability to construct 2-three units a month. “While operating on our pilot, we obtained a massive order from a client from Gujarat who ordered seven machines however didn’t have sufficient space to supply the requirement. And, therefore, we ended up the usage of a part of a car parking zone to fulfil the order,” remembers Arnav.
This made them understand that they needed to move into a larger space and consequently they went in for their seed spherical of funding, in March 2016, which was led by Sidharth Pansari’s Primarch I Venture Advisory and others. The amount raised turned into INR 2 Cr and Sandeep Patni, Abhishek Agarwal, Apurv Salarpuria and Singapore Angel Network additionally participated inside the round. “We intend to elevate our Series A spherical and a few price range have also approached us however we are nonetheless at a very initial stage of discussions. We need to apply most of this in growing income and after sales carrier community.”
BikeCleanse isn't the handiest participant supplying speedy services to bikers. Players like Express Bike Wash, Let’s Service, Gear6.In, Autoyaar are some different homegrown players giving hard opposition to the group. But, as Arnav well-knownshows, their most important competition is unorganised, nearby garages which cater to 80% of the country wide, motorcycle care market.
The startup’s primary USP, though, is water recycling. “Today, water wastage has emerge as a big trouble. Make in India, Startup India has helped positioned the focal point on businesses including ours. We are within the commercial enterprise of making entrepreneurs thru our motorbike care franchisees at a low capital funding INR 7 Lakhs–INR 9 Lakhs.”
BikeCleanse motorbike care stores were efficiently operational in a Tier I metropolis which include Bengaluru and a small metropolis in Andhra including Porumamilla. “A first-mover gain within the interiors of the united states of america will assist us immensely within the coming years as we scale throughout India,” he provides.
Tapping Into Cars And Solar Power: The Road Ahead
Run and operated by using Cleanse Solutions, BikeCleanse’s predominant recognition is to be a pioneer in automated cleansing technology throughout various verticals. “Our first cognizance market is motorbikes. In the destiny, we will be popping out with products for different verticals inclusive of CarCleanse if you want to target the automobile enterprise and SolarCleanse a good way to target the solar panel industry,” says Arnav.
The startup has also signed an settlement with petrol pump companies inclusive of Hindustan Petroleum (HP) and Indian Oil Corporation (IOC). HP and the IOC function in more than 40K+ locations across India and BikeCleanse plans to faucet as a minimum 10% of these locations with the aid of next yr. “Machines were bought to petrol pumps of IOCL and carrier centres/sellers of Honda, Hero and are in the technique of receiving dealer approvals at headquarter degree with Bajaj, TVS, Royal Enfield, and Yamaha,” says Arnav.
The startup intends to consciousness on scaling throughout the usa through a mix of franchising and enterprise-owned centres and this will be performed through putting in of BikeCleanse Instant Motorbike Care stores throughout essential bike populated cities of India.
Currently, having a presence in Hyderabad, Surat, Ahmedabad, and Bengaluru, the team seems to open 50 new enterprise-operated stores across India by using subsequent yr. Not most effective this, BikeCleanse additionally pursuits to release new shops in Mangalore, Coimbatore, and Visakhapatnam by using yr-give up.
Also, the founders are not simplest increasing their services inside the Indian marketplace, however additionally tapping the worldwide arena. Export orders to markets such as Colombia and Spain have already been received. Arnav smelled an opportunity within the African market as people there play Bike Polo. BikeCleanse’s mentor and advisory, Nimisha Madhwani, the ambassador to Uganda is helping them make bigger in the African marketplace.
“We purpose to be in throughout forty towns from the modern-day 7 towns in India and across 10 international locations the world over via our vendors within the next 1 12 months. Apart from that, we intend to feature our new product CarCleanse in the next few quarters,” says Arnav.
Perhaps this is why, they've grown approximately 12x year-on-12 months standard (franchise+device department) with 30+ BikeCleanse shops present throughout India. In 2015-2016, their sales reportedly grown 10x. “This time we're focused on three to four instances the sales we've got made in the present day monetary 12 months,” concludes Arnav.
Like logistics and hyperlocal startups, the auto preservation enterprise in India is fragmented, with neighborhood players in smaller places in Tier II and III regions taking on the bulk of the marketplace percentage. With carbon footprint becoming an increasing problem in foremost metropolitan towns, water scarcity too is an instantaneous concern that desires to be addressed. BikeCleanse’s AWMs provide a protracted-time period solution by means of first lowering the quantity of water required to easy motorcycles and additionally through automating the procedure, making scale feasible to boost up growth.
Onboarding mounted franchise partners which include IOCL, HPCL and extra additionally approach that the organization is not trading on most effective organisation-owned stores to penetrate this market and make a brand name for themselves. On the other hand, with opposition from the unorganised section in addition to other gamers together with Express Bike Wash, Let’s Service amongst others, and the innate infrastructural and economic needs of purchasing, putting in, and jogging a BikeCleanse centre, it remains to be visible how the nascent startup plans to tackle capex and opex with the intention to continue developing as according to the targets the crew has set for themselves.