New Delhi: Mobility solutions Supplier Automovill raised INR 2.15 crore in a pre-Series A round led by Inflection point companies. Following a hybrid and flexible business model, Automovill has 3rd largest presence across India, while catering to over 15 lakh customers. Automovill has enriched its technological offers to strengthen and organize after-sales service and automotive maintenance industry.
In order to improve current products and create technological synergies, the funds raised will mainly be used to expand the current scope of investments. It will also strategically channel and streamline operations, and expand its marketing scope. They include conducting ongoing research into potential capabilities to address automotive service challenges by introducing hassle-free, open and affordable solutions through a technology platform, and assisting with order accumulation and creation of direct and indirect jobs within the ecosystem and thus contribute to the growth of its partners.
Mitesh Shah, co-founder of Inflection Point Ventures, said, “India is one of the biggest automotive markets in the world. We have almost all car brands, from the most affordable to luxury cars sold in India. However, the after-sales and service journey is quite interrupted at several stages. Servicing cars using dealership service centers is an extravagance as customers would not feel safe leaving their car at the local garage as it can lead to more problems than solutions. Automovill exploits this market which is very expensive on the one hand and totally unorganized on the other. Our interest in the company stems from the fact that it is a hugely untapped market with only a few organized players, and we are confident that with Automovill’s disruptive and technological strategy, we will see it grow faster than its peers at an all India level.
Automotive technologies was founded in 2015 by a trio of experienced partners, Mridu Mahendra Das, Chinmay Baruah, and later joined by Ramana Sambu, who found the service cost-effective, hassle-free and customer-oriented for every car owner. At present, Automovill has a presence in 20 cities in India and caters to retail customers and customers of used car dealerships, car sharing and car insurance. companies thanks to its network of more than 200 workshops.
Due to the limited number of players actively trying to organize this market, Automovill has the advantage of capturing a larger market share before it becomes crowded.
The network of garages is built on rigorous parameters. Partners who wish to embark on the Automovill platform are subject to a selection process for maintenance and repair work. Customers can make a service reservation through the company’s website, mobile app or customer service line. The operations manager sends a driver to pick up the car from the customer and deliver it to a suitable supplier partner after receiving confirmation of the request and understanding the problem of the car. Once the customer has approved the quote, maintenance/repair work begins on the vehicle. Throughout the process, the client receives photos and videos of the work in progress. Once completed, customers can send payment through multiple online channels while the invoice is sent via email. The designated driver returns the customer’s car once payment has been made.
Mridu Mahendra Das, Co-Founder and CEO of Automovill said, “The team quickly picked up our business model and presented very comprehensive analysis and data collection for Automovill. It reflected the perfect impression of Automovill. It was all done in no time and hence the overwhelming response from investors in IPV.
Automotive servicing in India is expected to reach INR 73,100 crore by 2025. Currently, 70% of the business is carried out by the unorganized/semi-organized sector. Given that 98% of the non-warranty segment is currently served by the unorganized sector and conservatively assuming that Automovill can only garner 1% of the unorganized market over the next 3 years, the revenue potential of business is INR 150 crore by FY24.
Used car market: Used car volume in India was estimated at 3.9 million units ($18 billion in value) in FY21 compared to 4.1 million in FY20 due to of COVID. The used car market volume in the country is expected to reach 7.7 million by 2026 and is estimated at $44.7 billion.
In the coming years, the growth of this segment is expected to accelerate further. Compared to new car sales, used car sales will continue to rise as people’s preferences for personal mobility and the aftermarket industry become more price sensitive. India also competes with developed economies and the used car to new car ratio is expected to reach nearly 2 by FY26 from around 1.45 in FY21. such as the UK and the US used a car to new car ratio of 3.5 and 2.4 respectively.
Insurance claim: Automovill has grown enormously, it is an insurance claim that contributes to 30% of orders now. It facilitates cashless insurance claims in 20 cities for 18 insurance companies. Automovill has also developed its own insurance claims registration platform for agents and it is available in the Playstore. Automovill has also started supplying high quality lubricants to its network of partners for better quality and better control of the services provided by its workshops.
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