Bengaluru-based full-stack mobility solutions provider Automovill has raised Rs 2.15 crore in a pre-Series A funding round led by Inflection Point Ventures, a Gurugram-based angel investment firm.
Following a hybrid and flexible business model, Automovill claims to have the third largest presence across India while catering to 0.15+ million customers; It has enhanced its technology offerings to strengthen and organize the auto after-service and maintenance industry.
The startup plans to use the raised capital to expand the current scope of capital expenditure, marketing, and operations, improve current products and bring about synergy in technology.
Automovill said it would carry out ongoing research on potential abilities to fix the challenges of car servicing by introducing a hassle-free, open, and affordable solution via a technological platform, as well as assisting in the accumulation of orders and creating direct and indirect jobs within the ecosystem.
Founded in 2015 by Mridu Mahendra Das, Chinmay Baruah and later joined by Ramana Sambu. Currently, Automovill is present in 20 cities in India, catering to retail customers and pan India clients from used car sellers, ride-hailing, and auto insurance companies through its network of 200+ workshops.
The startup said that due to the limited number of players actively attempting to organize this market; It has the advantage of capturing a larger market share before it becomes overcrowded.
Mridu Mahendra Das, Co-Founder & CEO of Automovill said, “The team has quickly picked up our business model and presented a very comprehensive analysis and data collection for Automovill. It reflected the perfect impression of Automovill. Everything was done in no time and hence the overwhelming response from the investors in IPV.”
The garage network is built on stringent parameters. The partners who wish to come onboard Automovill’s platform are put through a selection process for service and repair work.
Automovill said customers can make a service reservation through its website, mobile app, or customer service line. The operation executive then sends a driver to pick up the car from the customer’s location and deliver it to an appropriate vendor partner after receiving confirmation of the request and comprehending the car issue.
After the customer approves the job estimate, the vehicle’s service/repair work commences. The startup said that the customer is sent pictures and videos of the ongoing work to keep her abreast with the progress.
After completion, customers can pay through multiple online channels while the invoice is sent in an email. The designated driver returns the customer’s car after making the payment.
“India is one of the largest automobile markets in the world. We have almost all the auto brands from affordable to luxury cars being sold in India. However, the post-sales and service journey is quite broken at multiple stages,” said Mitesh Shah, Co-Founder of Inflection Point Ventures.
“Maintaining cars by using dealers’ service centres is an extravaganza while customers don’t feel safe leaving their cars with the local garage as it can lead to more problems than solutions. Automovill is tapping into this market which is highly expensive on one end and totally unorganized on the other. Our interest in the company comes from the fact that it is a hugely untapped market with only a few organized players, and we are confident that with the disruptive and tech-enabled strategy of Automovill, we will see them growing faster than its peers at pan India level,” Mitesh adds.
According to the company’s statement, Automobile servicing in India is expected to reach Rs 73,100 crore by 2025. Currently, 70% of the business is done by the unorganized/semi-organized sector. Given that 98% of the off-warranty segment is currently catered to by the unorganized sector and conservatively assuming Automovill can garner only 1% of the unorganized market in the next 3 years, the top-line potential is Rs 150 crore by FY24.
Indian used car volume was estimated at 3.9 million units ($18 billion in value) in FY21, down from 4.1 million in FY20 due to COVID. The used car market volume in the country is expected to reach 7.7 million by 2026 and is estimated to be valued at $44.7 billion, the report added.
Source @Indianstartupnews
