Mahindra First Choice Wheels, a multi-brand used vehicle player part of the M&M group, received equity infusion of $15 million from San Francisco-based investment advisory firm Valiant Capital for a minority stake.
This is the second round of external private equity fund raised by the company. In 2008, Delhi-based Phi Capital had invested in the company and continues to be an investor. The fresh capital will be used to fund growth plans in the next few years, the company said. The used car market, estimated to be at 3.2 million units a year, is already larger than the new car market and is growing much faster. Despite the slowdown and other challenges, the size of the used car market is expected to double in five years.
The company is targeting to have over 1,800 outlets from the current 500 over five years and broaden its offerings in this sphere. For the fiscal ending 2015, the company’s used vehicles volume sold will be 140,000 between retail and wholesale, the statement added.
MFCWL, with presence in over 240-plus towns, registered growth (CAGR) of 40% in the used car business over five years. The cumulative retail footprint under the company is in excess of a million square feet. The company is also the market leader in the online wholesale auction space by having sold 225,000 vehicles through its eDiig platform.