Mahindra & Mahindra acquires minority stake in onboard diagnostics startup CarSense

By: | Published: February 22, 2018 3:40 PM

Mahindra in a stock exchange disclosure stated that as a part of the deal Mahindra & Mahindra will acquire 1,296 equity shares and subscribe 6,074 convertible cumulative shares.

Mahindra & Mahindra acquires minority stake in onboard diagnostics startup CarSense

Mahindra and Mahindra has acquired minority stake, 22.9 percent, in Carnot Technologies. Carnot Technologies owns and operates smart car solutions firm CarSense in a $1 million cash deal. The company plans to use the investment in product development. Mahindra in a stock exchange disclosure stated that as a part of the deal Mahindra & Mahindra will acquire 1,296 equity shares and subscribe 6,074 convertible cumulative shares.  

Founded IIT alumni Rohan Vadgaonkar, Prathamesh Joshi, Urmil Shah and Pushkar Limaye the company is directely involved in developing and retailing internet connected devices to monitor the working and performance of those devices. These devices fit into the on board diagnostics section of the car and then are paired with the user smartphone via app. The device is a car diagnostic solution which, from time to time, alerts the users on servicing, safety inputs and repairs, if required. The app further offers GPS tracking, SOS alerts, performance data, roadside assistance, among many others

The company claims to have a turnover of Rs 1.2 crores in 2016-17. CarSense was selected as one of the top three by Qualcomm’s Design in India challenge with a total prize money of $100,000. The company has previously raised funds from HNI’s including Sandeep Tandon and Kunal Shah.

Recently Mahindra & Mahindra picked up 16 percent stake in Zoomcar for $27.6 million, with the round exceeding $40 million.   

The global automotive OBD market will grow at a CAGR of 15.55 percent during 2017-2021. According to market research experts, regulations enforcing necessary OBD systems may influence the demand in the next few years. As the governments in developing regions are focussing on implementing OBD system legislations, the OBD market will see a higher growth in these regions when compared to developed markets.  

Mahindra & Mahindra has been actively investing in the country. They recently invested in Mitra Agro enquipments, acquiring 26 percent of stakes for $1.25 million to grow its portfolio in the agriculture sector.

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