Schaeffler India has announced that its Board of Directors has approved the acquisition of 100 percent of the shares of KRSV Innovative Auto Solutions (Koovers), a Bengaluru-based spare parts solutions company that serves the aftermarket workshops via a B-to-B e-commerce platform.
As per the share purchase agreement, Schaeffler India will acquire 100 percent shares of KRSV Innovative Auto Solutions for a consideration of approximately Rs 142 crore. The transaction would be completed in third quarter of CY 2023, subject to customary closing conditions. This acquisition will be fully funded by own cash generation.
This acquisition it says presents an ideal synergy for Schaeffler’s future aftersales activities in India. It will be a key enabler for the aftermarket ecosystem, including distribution partners and help to play an important role in the fast growing and evolving aftermarket digital landscape.
Schaeffler’s Automotive Aftermarket division supplies components and holistic repair solutions for the automobile spare parts business worldwide and sees itself as an enabler of garages. The company says it supports garages in complex repairs and at the same time contributes to extending the operating life of vehicles.
Founded in 2015, Koovers has established a B-to-B e-commerce platform offering spare parts solutions to aftermarket workshops in India. With revenues of Rs 77 crore in the financial year 2022-23, the company has a compelling growth story and is one of the fast-growing players in the Indian B-to-B e-commerce market. Currently, Koovers supplies to over 7,000 plus workshops and has a portfolio of around 1.8 million parts from various manufacturers. The platform will continue to operate under Koovers brand name.
Harsha Kadam, MD, Schaeffler India said, “This will be a strategic step to maximise value creation through our repair solutions for all customers. Schaeffler Automotive Aftermarket’s ambition has always been to simplify workshop operations with plug and play products and solutions, while building consumer connect. Koovers strongly supports this ambition with its innovative digital offering.”
Debasish Satpathy, President – Automotive Aftermarket Schaeffler India said, “This acquisition is in line with Schaeffler India’s strategic initiatives for growth and provides a compelling synergy potential. With its digital offering, the Koovers B-to-B e-commerce platform enables workshops to easily order spare parts solutions. We welcome the Koovers team to the Schaeffler Group.“
Sandeep Begur Sheshadri, CEO and Co-founder, Koovers said: “Since our foundation 8-years ago, we have scaled our business through innovative solutions and offerings. Koovers will expand its market coverage and depth, as well as extend product portfolio across the automotive aftermarket under the ownership of Schaeffler India. We are delighted to be an integral part of Schaeffler India and are committed to create value for all stakeholders.”
