Mahindra First Choice Services (MFC), part of the $20.7 billion Mahindra group, is open to talks with strategic investors to raise ₹125 crore. “We need at least ₹125 crore to accelerate our expansion programme,” said CEO YVS. Vijaykumar. “The funds will be invested in technology and brand building.”
He said the firm was not in a hurry to raise resources and that it may sew up the deal in the next 6-12 months. Two years ago, MFC Services had decided to raise ₹250 crore, but the plan was shelved “as the time was not right then.” Currently, the firm has a portfolio of 330 car workshops in over 250 towns and plans to ramp up to 1,000 in three years. “While the auto aftermarket industry is growing 9%-10% per annum, we are growing higher than that. Last year, we posted revenue of ₹91 crore and expect to post a 50% increase in this fiscal,” he said.
2,500 shops by 2023
MFC Services announced its entry into multi-brand servicing of 2-wheelers on a pilot basis in Patna. It will go pan-India in the next quarter. “The two-wheeler aftermarket is dominated by independent garage owners. We are trying to [bring] them into the organised sector. Our plan is to have 2,500 workshops by 2022-23.”
The firm has introduced servicing of cars in select HPCL outlets for minor services within two hours.
