Automovill, a full-stack mobility solution provider, has raised Rs 2.15 crore in a pre-Series A round led by Inflection Point Ventures. The funds raised will primarily be used to expand the current scope of capital expenditure.
Furthermore, the company will strategically channel and smoothen operations and broaden marketing scope. This will include research on potential abilities to fix the challenges of car servicing by introducing a hassle-free, open and affordable solution via a technological platform.
In order to improve current products and bring about synergy in technology, it will also consider assisting in the accumulation of orders and creating direct and indirect jobs within the ecosystem.
Speaking about the investment in Automovill, Mitesh Shah, co-founder, Inflection Point Ventures said, “Our interest in the company comes from the fact that it is a hugely untapped market with only a few organised players, and we are confident that with the disruptive and tech-enabled strategy of Automovill, we will see them growing faster than its peers at pan India level.”
Automovill caters to over 0.15 million customers in India and has enhanced technology offerings to strengthen auto after-service and maintenance industry. At present the company, founded in 2015 by a trio of Mridu Mahendra Das, Chinmay Baruah, and later joined by Ramana Sambu, has presence in in 20 cities in India catering to retail customers and pan India clients from used car sellers, ride-hailing and auto insurance companies through its network of 200+ workshops.
Mridu Mahendra Das, Co-Founder & CEO, Automovill added that, “The team has quickly picked up our business model and presented a very comprehensive analysis and data collection for Automovill. It reflected the perfect impression of Automovill. Everything was done in no time and hence the overwhelming response from the investors in IPV.”
Automobile servicing in India is expected to reach Rs 73,100 crore by 2025. Currently, 70 percent of the business falls under the unorganised or semi-organized sector. Given that 98 percent of the off-warranty segment is currently catered to by the unorganised sector and conservatively assuming Automovill can garner only 1 percent of this in the next 3 years, the top-line potential, as per the company, is around Rs 150 crore by FY2024.
The used car market volume in the country is expected to reach 7.7 million by 2026 and is estimated to be valued at $44.7 billion. Compared to new car sales, used car sales are likely to increase as people’s preferences for personal mobility and price-sensitive after sales industry. In fact the ratio of used car to new cars is projected to reach close to 2 by FY2026 from about 1.45 for FY2021.
Insurance claim is another segment where Automovill is looking at expnasing and currently it contributes 30 percent of total orders. Automovill is facilitating cashless insurance claim in 20 cities for 18 insurance companies.
