This is the second round of external private equity that MFCWL has raised. In 2008, MFCWL worked with Phi Capital. The latter continues as an investor. Capital raised will be used to fund growth plans over the next few years to organise the used car industry and provide used car consumers a better buying experience. Anand Mahindra, Chairman and Managing Director, Mahindra and also Chairman of Mahindra First Choice Wheels says MFCWL is another example of innovation and entrepreneurship within the Group. With marquee investors attracted to MFCWL and participating in its growth story, there’s more to come.
Mahindra First Choice Wheels raises $15 million
MFCWL hybrid business model smoothens consumer experience online and on the ground. Rajeev Dubey, President (Group HR, Corporate Services and After-Market) and Member of the Group Executive Board, Mahindra says MFCL believes in a brick and click functionality . The company will continue to invest.
Dr. Nagendra Palle, CEO and Managing Director of Mahindra First Choice Wheels says consumers are looking for more tools and insight related to used vehicles. Alongwith a successful partnership with Phi Capital over the years, the company welcomes Valiant Capital as a new partner.
Funds will be used to accelerate growth of its physical network as well as adoption of technology enabled products and services. MFCWL looks to end FY 2015 with 500 franchise outlets. This number is set to grow to 1,800+ outlets in the next 5 years. Funds will be utilised to broaden Mahindra First Choice Wheels reach across other used vehicle categories. In FY 2015, MFCWL used vehicle volumes sold will be 140,000 between its retail and wholesale, alongside 140,000 Autoinspekt inspections.
Indian used car market has an estimated size of 3.2 million units, and is already larger than the new car market. It continues to grow faster than the new car market. Used car market is expected to become almost double the size of the new car market in 5 years.