DriveX, founded by former Formula 1 driver Narain Karthikeyan and Christopher Sargunam, offers a slew of services including sale and trade of pre-owned two-wheelers
The investment will enable DriveX to further scale up offerings and expand its footprint in the coming years
The Chennai-based pre-owned two-wheeler platform’s turnover stood at INR 8.68 Cr in FY22, up from INR 47.98 Lakh in FY21
Indian two-wheeler manufacturer TVS Motor Company on Wednesday (August 24) said it has acquired a 48.27% stake in pre-owned two-wheeler platform DriveX for INR 85.41 Cr.
The investment will enable DriveX to further scale up offerings in the used bike space and to drive innovative solutions to corner a bigger pie of the pre-owned two-wheeler market. DriveX also plans to use the funding to expand its footprint to other cities in the coming years.
The acquisition will enable TVS Motor to leverage its presence and mark its foray in the highly-competitive pre-used two-wheeler vehicle segment.
In a regulatory filing, TVS Motor said that it would acquire stake in Nkars Mobility Millennial Solutions Private Limited (NMMSPL), the parent company of DriveX, via primary and secondary investments
“…subject to completion of the conditions precedent to closing, TVS Motor Company shall obtain 48.27% stake in NMMSPL through subscription of shares issued by way of preferential allotment and through purchase of shares from certain existing shareholders of NMMSPL,” it added.
The startup will not require any prior approvals for the acquisition.
“We have…been successful at launching new business models, including the subscription model in the pre-owned two-wheeler segment. In the coming years, DriveX will aim to strengthen its presence across India, followed by other geographies in due course,” DriveX founder and CEO Narain Karthikeyan, who is also a former Formula 1 driver, said.
TVS Motor MD Sudarshan Venu said, “The pre-owned two-wheeler market is largely unorganised today…Narain and his team have built a unique platform that can scale up quickly. DriveX has a vision to bring a change in this segment by building trust, assurance, and transparency through end-to-end, high-quality products and customer experience through innovative solutions.”
DriveX, founded in 2020 by Karthikeyan and Christopher Sargunam, offers a slew of services including sale and trade of pre-owned two-wheelers. It also offers a digital subscription platform that enables users to buy or lease two-wheelers for a flexible tenure or on a purchase model.
The startup currently operates in five cities – Bengaluru, Chennai, Madurai Coimbatore and Aruppukottai.
According to the regulatory filing, the Chennai-based startup recorded a turnover of INR 8.68 Cr in the financial year 2021-22 (FY22) and INR 47.98 Lakh in FY21.
Despite India being the largest two-wheeler manufacturer in the world, the pre-owned market in the country is largely unorganised, with trade largely generated among individual sellers and local dealers and mechanics.
The online pre-owned seller market is considered highly competitive and includes a host of players including BikeWale, Ola, Bikes24, Credr, Droom, BikeDekho, among others.
