TVS Motor buys stake in DriveX, owned by Narain Karthikeyan
TVS Motor will acquire almost half of DriveX, a pre-owned two-wheeler startup founded by Narain Karthikeyan. The two-wheeler manufacturer announced on Wednesday that it has decided to buy 48 per cent stake in the startup at a cost of ₹85 crore. TVS Motor bought the stake from NKars Mobility Millennial Solutions Pvt Ltd (NMMSPL), which operates under the brand DriveX.
Narain Karthikeyan, who is India's first sportsperson to represent country in Formula 1 motorsport, founded DriveX to lease out two-wheeler motorcycles and scooters. The company is also involved in selling, trading, and distributing pre-owned two-wheeler motorcycles and scooters. In the financial year 2021-22, DriveX had reported a turnover of around ₹9 crore.
Karthikeyan said DriveX is a digital first business, serving all brands with analytics-led capabilities across the value chains. "We have also been successful at launching new business models, including the subscription model in the pre-owned two-wheeler segment. In the coming years, DriveX will aim to strengthen its presence across India, followed by other geographies in due course," he added.
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Sudarshan Venu, Managing Director at TVS Motor Company, hopes DriveX will be able to deliver high customer satisfaction when it comes to pre-owned two-wheelers. He said, "DriveX has a vision to bring a change in this segment by building trust, assurance, and transparency through end-to-end, high-quality products and customer experience through innovative solutions."
TVS Motor, which is one of India's top two-wheeler manufacturers, builds and sells motorcycles and scooters, including electric vehicles, besides three-wheeler commercial units too. The Indian auto giant has four manufacturing facilities in Hosur, Mysuru and Nalagarh in India and Karawang in Indonesia. It also owns the UK-based Norton Motorcycles. The company exports its two-wheelers to 80 countries.
TVS Motor will be able acquire its stake in the DriveX by end of November this year when the acquisition process is expected to completed.