TVS Motors acquires 48% stake in Narain Karthikeyan’s two-wheeler startup DriveX | Tech Reddy

Karthikeyan’s firm Nkars Mobility Millennial Solutions Private Limited (NMMSPL) operates a digital platform ‘DriveX’ that offers two-wheelers to customers on a variable term subscription and purchase model, along with some ancillary services.

In FY 2020-21, NMMSPL had a revenue of ₹47.98 lakh. This investment in DriveX by TVS Motors aims to create innovative solutions to lead this transformation, the latter said in a stock filing.

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According to the agreement, “TVS Motor Company Limited (TVSM) considers NMMSPL as a strong partner to grow its two-wheeler business in the future. So far, subject to completion of pre-closure conditions, TVSM will receive 48.27% of shares in NMMSPL by way of subscription of shares issued by way of special allotment and by purchase of shares from certain existing shareholders of NMMSPL.” The indicative time for completion of the acquisition is 30 November 2022.

“The two-wheeler market is not very developed today. It’s exciting to see what DriveX has been able to do and deliver in such a short amount of time. Narain and his team have built a unique platform that can scale quickly. DriveX has a vision to bring about change in this sector by building trust, assurance, and end-to-end transparency, high-quality products and customer experience through innovative solutions. We are confident of DriveX’s ability to deliver on this vision,” said MD Sudarshan Venu of TVS Motor Company while announcing the investment.

Launched in April 2020, DriveX started as a two-wheeler subscription platform, offering affordable and flexible transportation solutions and has expanded to five cities in a short span of time.

“The two-wheeler market is changing rapidly today. DriveX is the first digital business, serving all brands with unique analytics-led capabilities across the value chain. We have also had success in launching new business models, including a subscription model in the former two-wheeler segment, said DriveX founder Narain Karthikeyan.

“In the years to come, DriveX will aim to strengthen its presence across India, followed by other locations in due course. With this investment from TVS Motor Company, we are confident of expanding the vision of DriveX, and delivering a two-wheeler industry that exceeds customer expectations” he added. he said.