CarZ looks to raise $15m to push expansion & nurture growth plans

Tags: News
Multi-brand automotive service solutions company CarZ is looking at raising $15 million which could take care of their expansion and growth plans. The start-up had, a couple of years ago, found investors in Indo US Venture Partners, who seem to be keen to invest in the second round as well.

“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.

trushnaudgirkar@mydigitalfc.com

EDITORIAL OF THE DAY

  • Not warnings, total prohibition of smoking is the only answer to restoring citizens’ health

    In a landmark judgment the Supreme Court on Wednesday said the tobacco industry must adhere to government rules requiring stringent health warnings on

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Urs Schoettli

Japan’s seismic shocks raise big questions

In the middle of April the region of Kumamoto on ...

Zehra Naqvi

The flame of hate

Pyre. The name itself evokes a sense of foreboding, casting ...

Bubbles Sabharwal

Whiners and complainers, please exit

We all know WC stands for a water closet, a ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture