ReadyAssist Acquires Servicing Platform SpeedForce For $10 Mn

SUMMARY

Between 2014 and Q3 2022, roadside assistance and automotive services startups secured $73 Mn funding across 17 deals

With this acquisition, SpeedForce plans to organise more than 1000 workshops in the next year and further scale it to 4000 workshops in the coming five years

The development comes two months after ReadyAssist raised $5 Mn in a Pre-Series A funding round led by Howen International Fund

Roadside assistance startup ReadyAssist has acquired Gujarat-based two-wheeler servicing chain SpeedForce for $10 Mn in a cash and stock deal.

With this acquisition, SpeedForce plans to set up more than 1000 workshops in the next year and further scale it to 4000 workshops in the coming five years.

Further, the startup said it plans to strengthen SpeedForce’s franchise chain by establishing 700 workshops for two-wheelers and 72 workshops for four-wheelers this year to take the total workshops to 1000 by the end of March 2024.

The development comes two months after ReadyAssist raised $5 Mn in a Pre-Series A funding round led by Howen International Fund.

Set up in 2018 by Vimal Singh SV, ReadyAssist provides roadside assistance to vehicle owners. It works along with service providers to help the vehicle owners with repairing services on the road.

Besides this, the startup offers services including battery jumpstart, fuel delivery, key unlocking, towing, flat tire repair and other allied services. It also offers doorstep full-bike service.

“ReadyAssist is very successful in operating a PAN India roadside assistance and doorstep service to our 800,000 subscribed customers. This acquisition will help us extend the reach to our customers in their need for general periodic services and major repairs for both ICE and EV vehicles,” said Vimal Singh SV, founder and CEO of ReadyAssist.

Its website says the startup has connected with more than 5,000 service providers and covered 16,650 pin codes across the country. It caters to the needs of B2B and B2C segments.

On the other hand, SpeedForce was founded in 2012 by Kapil Bhindi, Deepen Barai and Ashok Shah. The startup follows a multi-brand two-wheeler servicing franchise model. Its offerings include pick up and drop facility, on-road breakdown support, insurance support, annual maintenance contracts, warranty program on spare parts, and lubricants, among others.

“This integration involves deployment of ReadyAssist’s signature technology systems into our workshops, building a convenient connected ecosystem for our walk-in customers giving them access to emergency assistance services across the country,” said, Kapil Bhindi, cofounder SpeedForce.

The startup claims to have organised more than 300 workshops in the past three years.

As per Custom Market Insights report, the global roadside assistance market was pegged at $23.6 Bn in 2021. The industry is anticipated to grow at a CAGR of 4.1% to become a $34.8 Bn space by 2030.

According to an Inc42 report, between 2014 and Q3 2022, roadside assistance and automotive services startups in India including Automotivl, Pitstop, LetsService and Cars24, among others cumulatively secured $73 Mn funding across 17 deals.

A major development has recently taken place in the automotive servicing industry with GoMechanic founder Amit Bhasin admitting to falsifying financial reports. Following this, its institutional investor Orios Venture Partners, wrote down its investment in the startup.

At the latest, the startup is reportedly connecting with online and offline players in the automotive after-sales sector for a potential acquisition deal. Besides this, it also laid off 70% of its workforce.