DriveX: TVS Motor Bolsters Stake in Motorcycle Refurbisher
Deal News | Dec 02, 2024 | Aim Group
India's TVS Motor has acquired a majority stake in DriveX, a motorcycle refurbishing company, by purchasing an additional 39.1% for INR977 million (US$11.5 million). This acquisition elevates TVS Motor's total share in DriveX to 87.3%, following a previous investment in 2022. Under the leadership of founder Narain Karthikeyan, DriveX operates a customer-to-business-to-customer (c-to-b-to-c) model, buying motorcycles, refurbishing them, and reselling. Since its inception in 2020, DriveX has expanded rapidly with 57 retail outlets across 22 cities and aims to increase to 130 outlets by May 2025. Despite its growth in infrastructure, DriveX has reported a revenue of INR339 million for the fiscal year ending March 2024 while posting a significant loss after tax of INR309 million. This strategic investment by TVS is poised to support DriveX's expansion plans and reduce its financial setbacks.
Sectors
- Automotive
- Retail
- Investment
Geography
- India – Both TVS Motor and DriveX are based in India, which is the location of their operations and business activities as described in the article.
Industry
- Automotive – The article involves TVS Motor, a motorcycle manufacturer, and DriveX, a motorcycle refurbisher, both key players in the automotive industry.
- Retail – DriveX operates retail outlets for selling refurbished motorcycles, indicating its participation in the retail sector.
- Investment – The article describes an acquisition and investment stake in DriveX by TVS Motor, relevant to the industry of private equity and investments.
Financials
- INR 977 million ($11.5 million USD) – Amount invested by TVS Motor to acquire a 39.1% stake in DriveX.
- INR 2.5 billion – Valuation of DriveX post the acquisition.
- INR 339 million – Revenue reported by DriveX for the fiscal year up to March 2024.
- INR 309 million – After-tax loss reported by DriveX for the fiscal year up to March 2024.
- INR 850 million – Previous investment by TVS Motor for a 48.3% stake in DriveX in August 2022.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| TVS Motor | Bidding Company | Company | An India-based motorcycle manufacturer acquiring a stake in DriveX. |
| DriveX | Target Company | Company | A motorcycle refurbisher founded by Narain Karthikeyan, operating on a c-to-b-to-c model. |
| Narain Karthikeyan | Founder | Person | Founder of DriveX and notable as the first Indian Formula 1 competitor. |