Mahindra First Choice services, the used car services arm of Mahindra & Mahindra, is planning to sell a portion of its stake to raise up to $50 million. The company is also eyeing around Rs 250 crore from the new business, which is branded spares or private label which was launched recently.
Speaking at the sidelines of Auto Serve 2016, organised by CII, Y V S Vijayakumar, chief executive officer, Mahindra First Choice Services Ltd said that the company is planning to raise around $40-50 million, which is to support company's expansion and strengthening technology for the future.
The money will also help to expand its recently launched portal carworkz, which is being tested at Mumbai currently. The portal allows customers to book, review and rate the independent garages. Currently it is operating only in Mumbai and company plans to take this to around 15 cities. Through this digital platform the company will work with around 15,000-20,000 garages in these cities.
Speaking about expansion, he said, currently the used car services arm has 215 network now and plans to increase this to 500 in one year and to 1000 in the next two years.
The company is also planning to launch MFC Car Care by next quarter which will be a value added services and would take care of car protection and car detailing.
Mahindra First Choice services is eyeing around Rs 1,000 crore over the next three years from the current Rs 150 crore, which is brand revenue.
Vijayakumar said that the private label or the branded spares business, which was started recently would contribute around Rs 250 crore of this revenue.
The company's vision is to be one stop shop solution for car owners, when it comes to sales, services, spare parts, accessories, annual maintenance, independent garages and to know price, he added.