CarZ looks to raise $15m to push expansion & nurture growth plans
Jan 30 2014
“Earlier Indo US venture partners had invested $5 million. They would like to invest in the second round as well. We are also in talks with PE players from the US, Japan and India and hope to clinch a deal in 4-6 months,” said Venu Donepudi, co founder of the company.
CarZ, which has tie-up with 18 insurance providers, offers services which a car owner finds difficult to deal with post warranty. These include periodic maintenance, collision repair and car detailing works. Right now they have 15 such centres in the southern part of the country, mostly Andhra Pradesh and Karnataka.
“We have one centre each in Tamil Nadu and Kerala. We would typically set up one centre, assess the customer needs and then expand our foot print there. After south, we would like to reach west and NCR. So by 2018, we hope to have 220 centers across the country,” he said.
These centres need 5,000 sqft to set up and an investment of around one crore. Not just this, but to pave way for franchise expansion, the company is mulling to introduce what it calls CarZ Express by April this year. These centres would offer select services meant for quick and minor services.
“We would set up such centres in places where we have a direct presence so that the quality of service can be ensured. The inventory is controlled so it will be more like a Mac Donald’s where you could have a quick bite. For the franchise, the investment would be around Rs 25 lakh and we can assure a principal break-even in 24 months,” Donepudi said.
The company’ revenues this fiscal could be Rs 20 crore. “With as many centers as we have now, the revenues next year could go up to Rs 35 crore,” co-founder of the company said.