Mahindra first choice services, the used car services arm of mahindra&mahindra, plans to sell a stake to raise up to Rs 250 crore and invest the proceeds in a startup initiative whereby it plans to aggregate car servicing centres.
Homegrown auto major Mahindra & Mahindra's investment in technology and product development has risen over 16-fold in ten years to touch Rs 1,938 crore in 2015-16
The aim is to close a deal in three to six months. The funds will be used in a portal, carworkz, which is currently being tested and is set to go on stream shortly.
Mahindra first choice has floated a fully owned subsidiary, autodigitech. The company is open to a Vcfund putting money in autodigitech, which will operate the carworkz portal, or a pe investing in mahindra first choice.
Mahindra first choice services Chief Executive Vijay Kumar confirmed the fundraising. "The company will be running autodigitech or carworkz as a true startup idea. we have studied the aggregation model in other industries. throughcarworkz, we will offer booking, reviews, rating, etc.," he said –
Through carworkz, Vijay Kumar said a customer can book service online, see the top-rated local service centres, as well as purchase spare parts, accessories and services as road assistance and maintenance contracts.
He will also be able to book appointments and make payments online. The online platform will aggregate a wide range of service centres, of all sizes, across the country.
"The carworkz platform will be complementary to the brick and mortar platform of mahindra first choice services," the CEO added.