Automovill Raises Rs 2.15 Crore In Pre-Series A Round Led By Inflection Point Ventures

Bengaluru-based start-up Automovill has raised Rs 2.15 crore in a Pre-Series A round led by Inflection Point Ventures. Following a hybrid and flexible business model, Automovill claims to have the 3rd largest presence across India, while catering to 0.15Mn+ customers, 

In order to improve current products and bring about synergy in technology, the funds raised will primarily be used to expand the current scope of capital expenditure. Furthermore, they will strategically channel and smoothen operations, and broaden their marketing scope. This will include carrying out ongoing research on potential abilities to fix the challenges of car servicing by introducing a hassle-free, open, and affordable solution via a technological platform as well as assisting in the accumulation of orders and creating direct and indirect jobs within the ecosystem, thereby contributing to the growth of its partners. 

Mitesh Shah, Co-Founder, of Inflection Point Ventures says, “India is one of the largest automobile markets in the world. We have almost all the auto brands from affordable to luxury cars being sold in India. However, the post-sales and service journey is quite broken at multiple stages. Maintaining cars by using dealers’ service centres is an extravaganza while customers don't feel safe leaving their cars with the local garage as it can lead to more problems than solutions. Automovill is tapping into this market which is highly expensive on one end and totally unorganized on the other. Our interest in the company comes from the fact that it is a hugely untapped market with only a few organized 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 Technologies was founded in 2015 by a trio of experienced partners, Mridu Mahendra Das, and Chinmay Baruah, and later joined by Ramana Sambu. At present, Automovill is present 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 more than 200 workshops.

Mridu Mahendra Das, Co-Founder & CEO, Automovill says, “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 Cr by 2025.  Currently, 70% of the business is done by the unorganised/semi-organised sector. Given that 98% of the off-warranty segment is currently catered to by the unorganized sector and conservatively assuming Automovill can garner only 1% of the unorganized market in the next 3 years, the top-line potential is Rs. 150 Cr by FY24.

Indian used car volume was estimated at 3.9 million units ($18 billion in value) in FY21, down from 4.1 million in FY20 due to COVID. 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. 

In the coming years, it is anticipated that this segment's growth would increase even further. Compared to new car sales, used car sales will continue to increase as people's preferences for personal mobility and the after-sales industry will be more price sensitive in nature.  India is also competing well with developed economies and the used car/new car ratio is projected to reach close to 2 by FY26 from about 1.45 for FY21 Compared to Developed markets such as the UK and US have used car/new car ratios of 3.5 and 2.4 respectively.

Automovil is present in the car insurance segment as well. The company claims to facilitate cashless insurance claims in 20 cities for 18 insurance companies. Additionally, it has developed its own insurance claim registration platform.