CarZ plans to raise $15-mn in Series-B round

To use funds to fuel its pan-India expansion plans

CarZ, a Hyderabad-based multi-brand car repair and maintenance services startup, is in the process of raising $15 million (Rs 96 crore) in a Series-B round of funding to fuel its pan-India expansion plans, said its co-founder and managing director Venu Donepudi.

"We are currently in talks with multiple investors and expect to close a deal within the next nine months. The proposed funds will be deployed to open 13 company-owned Grande outlets in Hyderabad, Bengaluru, Chennai, Maharashtra, Gujarat and New Delhi," he told Business Standard.

CarZ, co-founded by auto enthusiasts and experts Venu Donepudi and Vijay Gummadi in March 2008, started full-service operations in February 2010. Initially bootstrapped, the company had raised $5 million in a Series-A round from IndoUS Venture Partners in April 2011. CarZ currently operates 12 Grande facilities in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. 

 

At present, only about 30% of the cars are repaired and serviced at authorised dealers and service centres. There is a huge opportunity for organised, independent and multi-brand car repair and service providers, considering that India has a current car parcel of over 20 million. And every year, over 2.5 million cars are sold in India, making it the seventh largest auto market in the world. By 2017, it is estimated that this number will grow to 7 million cars sold each year, Donepudi said.

"To tap this huge market, we have developed a cost effective, no-frills service model called CarZ Xpress. We recently opened our first franchise outlet under the CarZXpress brand and our plan is to open 100 franchises across the country over the next 36 months," he added.