Exclusive: TVS Motor To Infuse INR 64 Cr In Narain Karthikeyan’s DriveX

SUMMARY

DriveX’s shareholders approved a proposal to issue 5,179 equity shares at INR 1.23 Lakh apiece to TVS Motor on a private placement basis

The startup said it would use the capital primarily towards repayment of its debt and for general corporate purposes

DriveX is a subsidiary of the automotive major, which holds an 87.38% stake in the pre-owned two-wheeler marketplace

TVS Motor Company is doubling down on its investment in pre-owned two-wheeler marketplace DriveX Mobility, cofounded by former Formula 1 driver Narain Karthikeyan, with an investment of INR 64 Cr.

As per the startup’s regulatory filings accessed by Inc42, its shareholders approved a proposal in April this year to issue 5,179 equity shares at INR 1.23 Lakh apiece to TVS Motor on a private placement basis to raise INR 63.99 Cr.

The startup said it would use the capital primarily towards repayment of its debt and for general corporate purposes.

A questionnaire sent to TVS Motor on the infusion of funds didn’t elicit any response till the time of publishing this story.

Notably, DriveX is a subsidiary of the automotive major. In December last year, the company acquired an additional 39.11% stake in the startup to increase its shareholding in the two-wheeler marketplace to 87.38%.

Founded in 2020 by Karthikeyan and Christopher Anand Sargunam, DriveX is an autotech platform that enables the sale and purchase of refurbished two-wheelers. Customers can buy used two-wheelers on the platform from brands like Hero, TVS, Bajaj, Yamaha, KTM and Honda.

The Bengaluru-based startup also offers bike repair services in select cities such as Bengaluru, Chennai, Coimbatore, Madurai, Kolar, among others, with prices starting at INR 599. It also sells spare parts, accessories and engine oil for two-wheelers.

TVS first acquired a 48.27% stake in DriveX for INR 85.41 Cr in 2022. Besides DriveX, TVS is an investor in EV startup Ultraviolette.

DriveX competes with the likes of Bike Bazaar, BeepKart and CarDekho’s parent Girnar Software’s bike reselling platform BikeDekho in the competitive used two-wheeler online marketplace segment.

However, the sector is not without its challenges and many players are struggling with unit economics troubles due to high costs and low margins.

In October last year, Inc42 reported that BeepKart fired around 130 employees in three rounds of layoffs in a cost-cutting exercise amid a funding crunch.