Used vehicle automotive services provider Mahindra First Choice Wheels (MFCWL), has raised a new round of $15m or about Rs 100 crores, the company said here today.
The company will use the funds to grow its franchise dealer network and invest in new technology-enabled products and services for the consumer online, it said.
The entire investment is in the form of primary capital and will be used to fund its growth over the next 18 months and values the company at USD 250 m pre-money and USD 265 million post money, it said. The last primary fund raise was in March 2015.
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MFCWL has been among the fastest growing automotive products and services provider and over a five-year period has achieved a monthly growth rate of nearly 3.5 per cent. The company revenues have grown nearly eight times in the last 5 years, it claimed.
"MFCWL is a company founded on the principles of innovation and entrepreneurship and as one of the fastest growing companies in the Mahindra Group it is testament to both its own performance as well as the Groups ability to create and nurture ventures with a focus on shareholder value," Anand Mahindra, Chairman, Mahindra &Mahindra said.
MFCWL has 1,650 franchise dealers in 800 plus towns (mahindrafirstchoice.com). It also provides of technology enabled platforms in the areas of used vehicle auctions (eDiig.com), inspections (autoinspekt.com) and pricing analytics (indianbluebook.com).
More recently it has launched a new remote inventory management solution (Yard Management Solution YMS) which is an innovative wholesale inventory management platform with nearly 600 yards under management.
With GST rates being rationalised, the company is looking to grow to a network of 5,000 dealers in the next five years.
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