TVS Motor Company on Wednesday said it will acquire 48 per cent stake in Narain Karthikeyan’s pre-owned two-wheeler startup ‘DriveX’ for a consideration of Rs 85 crore.
The company said it will acquire 48.27 per cent stake in NKars Mobility Millennial Solutions Pvt Ltd (NMMSPL), which operates under the brand ‘DriveX’, through primary and secondary investments.
Founded by Formula 1 driver Karthikeyan, DriveX is into leasing of two-wheeler motorcycles and scooters and selling, trading, and distributing pre-owned two-wheeler motorcycles and scooters.
”DriveX has a vision to bring a change in this segment by building trust, assurance, and transparency through end-to-end, high-quality products and customer experience through innovative solutions. We are confident of DriveX’s ability to deliver on this vision,” TVS Motor Company Managing Director Sudarshan Venu said in a statement.
DriveX Founder and CEO Karthikeyan said DriveX is a digital-first business, serving all brands with analytics-led capabilities across the value chains.
”We have also been successful at launching new business models, including the subscription model in the pre-owned two-wheeler segment. In the coming years, DriveX will aim to strengthen its presence across India, followed by other geographies in due course,” he added.
Last fiscal year, the platform had reported a turnover of around Rs 9 crore.
The acquisition is expected to be completed by November 30, 2022, TVS Motor said.