Multi-brand car service chain Carnation Auto, promoted by former Maruti Suzuki India chief c, today said it has raised Rs 85 crore from Mumbai-based private equity fund Gaja Capital Partners.
"This new round of financing will enable Carnation Auto to further consolidate its pioneering independent multi-brand auto solution network and also further scale its successful certified pre-owned car programme across the country," the company said in a statement.
The company had raised its first round of funding of Rs 108 crore from PremjiInvest and IFCI Ventures.
Carnation Auto has 24 outlets in 16 cities and has already serviced and delivered over 350,000 cars since its inception. Out of these service centres, 12 of them also buy and sell used cars.
Commenting on the development, Carnation Auto Managing Director Jagdish Khattar said: "The independent multi-brand concept is now well accepted in the industry and by customers alike. Our investors have shown tremendous confidence in our business model and in our team's ability to deliver in a short period of time."
According to the company, the aftersales car repair market is estimated to be over Rs 20,000 crore, including over Rs 6,000 crore of body shop and Rs 15,000 crore service and spares markets. It is growing at a compound annual growth rate of over 20%.
"Till recently this space was dominated by either the authorised network or the unbranded neighbourhood garage. India's pre-owned cars market worth is estimated to be over Rs 40,000 crore and more than 20 lakh used cars are sold every year," it added.
Carnation Auto is gearing up for an aggressive expansion into the used-car market with plans to open over 160 outlets across the country in the next three years.
