TVS Motor Raises Stake In Narain Karthikeyan’s DriveX Mobility

SUMMARY

TVS Motor Company has picked up an additional 39.11% stake in Narain Karthikeyan’s two-wheeler startup DriveX Mobility for INR 97.78 Cr (around $11.5 Mn) in an all-cash deal

With this acquisition, the listed automajor has raised its total stake to 87.38% with DriveX becoming a subsidiary of TVS Motor

Founded in 2020, DriveX Mobility is a digital-first autotech platform that enables the sale and purchase of refurbished two-wheelers

TVS Motor Company has picked up an additional 39.11% stake in Narain Karthikeyan’s two-wheeler startup DriveX Mobility for INR 97.78 Cr (around $11.5 Mn) in an all-cash deal.

With this acquisition, the listed automajor has raised its total stake to 87.38% with DriveX becoming a subsidiary of TVS Motor.

TVS Motor informed the bourses on Monday (December 23) that it has completed the acquisition of 7,914 equity shares with a face value of INR 10 each from existing shareholders of DriveX.

Following the announcement, shares of TVS Motor rose nearly 2% during the intraday trading session today to INR 2,433.65 apiece on the BSE.

Founded in 2020 by Karthikeyan, India’s first Formula One driver, and his childhood friend, Christopher Anand Sargunam, DriveX Mobility is a digital-first 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 for as little as INR 50K to INR 2 Lakh.

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.

It is pertinent to note that TVS Motor first acquired a 48.27% stake in Nkars Mobility Millennial Solutions, the parent entity of DriveX, for INR 85.41 Cr in 2022.

Founded in 1979, TVS Motor is the flagship brand of TVS Group and claims to be the third largest two-wheeler manufacturer in India in terms of revenue.

The company has taken massive strides in the electric vehicle sector over the past few years amid the government’s policy push to position India as the manufacturing hub for EVs.

In 2020, TVS Motor unveiled its first electric scooter iQube. As of November 2024, it commanded a 23% market share in the two wheeler EV segment, going neck and neck against Bhavish Aggarwal-led Ola Electric, which held a 24% share.

TVS Motor has also backed several startups — including the likes of EV startup Ultraviolette Automotive and SaaS unicorn Zoho.

As Inc42 reported earlier, TVS Motor is also planning to increase the sale of its EVs in both developing and developed markets, with the aim of promoting India as a major EV exporter.