Two-wheeler maker TVS Motor Company has decided to acquire a stake in a start-up founded by Formula 1 driver Narain Karthikeyan.
The Chennai-based company will invest Rs. 85,41,47,756 to buy the 48.27% stake in NKars Mobility Millennial Solutions Private Limited (NMMSPL), a pre-owned two-wheeler platform, by way of primary and secondary investments. The acquisition is expected to be completed by November.
NMMSPL is engaged in leasing motorcycles and scooters and selling, trading and distributing pre-owned two-wheelers.
Incorporated in April 2020, the startup operates a digital platform called DriveX that provides two-wheelers to customers on a subscription model for a flexible tenure and on a purchase model along with ancillary services.
In FY 2020-21, NMMSPL reported a turnover of Rs. 47,98,000. It reported an unaudited turnover of Rs. 8,68,30,000 in FY 2021-22.
“TVS Motor sees a strong potential in the pre-owned two-wheeler market, which is witnessing a structural shift
from the unorganized to the organized sector. The pre-owned two-wheeler market is growing rapidly and has garnered high levels of investor and customer interest in recent years, driven by digitization and emergence of start-ups,” said a statement by TVS Motors.
“This investment in DriveX is aimed at enabling innovative
solutions to lead this transformation,” it added.
Founded by Karthikeyan, India’s first Formula 1 driver, DriveX is a fully integrated model present across the pre-owned two-wheeler vehicle value chain.
This includes procurement, refurbishment and retailing of multi-brand pre-owned two-wheelers.
DriveX started off as a two-wheeler subscription platform, providing affordable and flexible mobility solutions, and has expanded to five cities.
“The pre-owned two-wheeler vehicle market is changing rapidly today. DriveX is a digital-first business, serving all
brands with unique analytics-led capabilities across the value chains. We have also been successful at launching new business models, including the subscription model in the pre-owned two-wheeler segment,” Karthikeyan said.
“In the coming years, DriveX will aim to strengthen its presence across India, followed by other geographies, in due course. With this investment from TVS Motor, we are confident of expanding the DriveX vision, and delivering a pre-owned two-wheeler business that exceeds customer expectations,” he added.
According to Sudarshan Venu, managing director of TVS Motor, Narain and his team have built a unique platform that can scale up quickly.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
