According to the latest reports coming from the Indian automobile market Chennai-based, automobile giant TVS Motor Company has made an announcement that it will acquire a 48% stake in a two-wheeler startup named DriveX.
DriveX which was founded by Kumar Narain Karthikeyan, the first Indian Formula One driver, is focused on providing services such as selling, trading, and distributing pre-owned two-wheeler motorcycles and scooters. DriveX which is owned by NKars Mobility Millennial Solutions Pvt Ltd is also in the business of leasing two-wheeler motorcycles.
In the previous financial year, the overall turnover of the startup was nearly 9 crore Indian rupees.
Unlike other rental services for automobiles, DriveX provides both subscription-based and ownership-based services to customers who will get access to good quality new or used vehicles which can be availed for economical monthly subscription services.
TVS Motor Company said in a statement that it is planning to acquire 48.27% shareholding NKars Mobility Millennial Solutions Pvt Ltd. The acquisition is expected to happen through both primary and secondary investments in the company. The acquisition deal will be closed for a price of 85.41 crore rupees.
Sudarshan Venu who is managing director of TVS Motor Company said in a statement that the startup can bring a huge change in the two-wheeler and scooters segment in India by providing high-quality products and customer experience through various innovative solutions. He also said that the startup founded by Karthikeyan has been able to build trust, assurance, and transparency in the Indian automobile market through its various practices.
Narain Karthikeyan said that DriveX focuses on a fully digital business where it can serve all the automobile brands with analytics lead capability across the value chains.
He also said that through the acquisition by TVS Motor Company, the startup will be looking to expand its market presence across the country and generally over the course of time move to other geographical locations.
Media reports suggest that the acquisition of DriveX by TVS Motor Company is expected to be concluded by the end of November this year.
About TVS Motors Company
TVS Motor Company which was founded by TV Sundaram Iyengar 44 years ago is one of the largest two-wheeler and three-wheeler companies in the world. It has a revenue of 3.1 billion dollars and an operating income of more than 130 million dollars.