The company is raising Series C funding round
Investors include Iron Pillar and Blume Ventures
The funds will help the company to meet general business requirements as well
Mumbai-based device management platform Servify is now raising fresh capital from its existing investors for strategic business expansion and stability.
According to the Ministry of Corporate Affairs filings accessed by Inc42, the company in a special resolution on June 6 decided to create and offer 27,23,163 Series C preference shares at a face value of INR 1 and premium of INR 314.35 per share worth INR 85.87 Cr.
Of this, Iron Pillar is investing INR 82.49 Cr from its Iron Pillar Top Up fund, Luxembourg-based Tetrao SPF is investing INR 2.24 Cr and Blume Ventures via Milestone Trusteeship is investing INR 1.12 Cr.
The company said that these funds will be used for strategic business expansion as well as to meet general business requirements addressing working capital and operational expenses, including sales and marketing, key hires, technology and other general expenses.
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Post-investment, Iron Pillar will hold 16.74% stake, Tetrao will hold 1.43% stake and Milestone via Blume will hold 4.57% stake in the company.
Prior to this, the startup has raised $15 Mn from Iron Pillar, Blume Ventures, Trifecta Capital, BEENEXT among others.
Founded in 2015 by Sreevathsa Prabhakar, Servify offers a platform which aims to help users access authentic brand authorised service during in-warranty as well as out of warranty scenarios.
It also offers services like product diagnosis, warranty and protection plans, queue management, and chatbot support to its clients. Servify currently works with a number of device brands, retailers, distributors, insurers, service providers and carriers such as Amazon, AmTrust, Apple, Croma, Godrej, Huawei, Ingram Micro, Micromax, Motorola/Lenovo, Nokia, OnePlus, OPPO, Panasonic, RealMe, Redington, Reliance Jio, Reliance Retail, Sangeetha Mobiles, Vodafone and Xiaomi, among others.
Besides India, Servify also operates in the US while it has recently set up operations in Europe. In January last year, Servify had acquired gadgets repair startup iService in a cash and stock deal to provide consumers with better after-sales services.
The appliances and consumer electronics industry is projected to double to INR 1.48 Lakh Cr by 2024-25. The market is expected to see an acceleration in growth on account of surging rural consumption, reducing replacement cycles, increasing penetration of retail, a wide choice of brands and products at various price points.
While the consumer device protection market size is expected to touch $1.1 Bn in FY24, other growth drivers will be on-demand repair services estimated to be worth $1 Bn, home protection and AMC services estimated to be worth $1.2 Bn and brand warranty and installation services at $2 Bn, which makes the overall after-sales service pie market worth $5.3 Bn in FY 24 in India.