Mahindra and Mahindra's pre-owned cars division in India is offering equity to India based PE fund, Phi Advisors. The funds raised through this equity shall be used to finance the roll out of First Choice's chain of 300 owned and franchise outlets in India.
"We are targeting 100,000 vehicle sales per annum by 2013. With this funding, we will increase our reach to over 300 outlets. This will include 30 franchise super stores, each of which will have a stock of over 200 cars on display," said Vinay Sanghi, CEO, First Choice Wheels.
Rajeev Dubey, President After-market Sector, M&M, said, “Our vision is to corporatise the pre-owned used car business, which is a pioneering effort by the Mahindra Group. FirstChoice is at the threshold of its next phase of growth and the infusion of funds and a partner like Phi would help transform the company into a truly pan – Indian player, helping us consolidate our leadership in the multi-brand pre-owned car industry.”
The pre-owned car market is expected to grow exponentially and today it holds a market share of 1.5 million cars annually. The pre-owned car industry is expected to grow up to Rs. 50000 crores in next five years.
