Mahindra First Choice Wheels (MFCW), a leading multi-brand certified used vehicle player promoted by Mahindra Group, signed an agreement to raise $15 million (Rs.94 crore) from San Francisco-based investor advisor firm, Valiant Capital, which will take a minority stake in the company.
This is the second round of private equity raised by MFCW with the first round in 2008 from Delhi-based Phi Capital.
“MFCW is yet another example of innovation and entrepreneurship within the group, where new business models are being explored and implemented with persistence,’’ Anand Mahindra, CMD, Mahindra & Mahindra and Chairman, MFCW said in a statement. “It is exciting to see marquee investors attracted to MFCW and participating in its growth story where much is yet to come.’’
MFCW uniquely uses the ‘hybrid’ business model bridging the consumer experience online and on the ground through its ‘brick and click’ model. In order to enable this hybrid ecosystem, the company has launched several technology enabled products and services to address the key drivers of trust deficit in a used car transaction namely — vehicle condition, paperwork, pricing and experience.
It plans to use the funds to accelerate its growth in both the physical network and adoption of its technology-enabled products and services used by all industry stakeholders.
MFCW said it was planning to end fiscal year 2015 with 500 franchise outlets and would grow to 1,800 plus outlets in the next five years. Over the same period, used vehicles sold would be 1.40 lakh between its retail and wholesale and it would complete 1.40 lakh Autoinspekt inspections.
