Carnation Auto, has closed a 2nd round of funding totalling Rs. 85 Crore from Gaja Capital Partners, a Mumbai-based private equity fund. This new round of funding will enable the company to further consolidate its pioneering independent multi-brand auto solution network and scale up its successful certified used car program across India.
Speaking on the occasion, Mr. Jagdish Khattar, Managing Director of Carnation, said, “The Independent multi-brand concept is now well accepted by both the industry and customers. Our investors have shown tremendous confidence in our business model and in our team’s ability to deliver in a short period of time. Given Gaja Capital’s successful investing track record and extensive operating experience, I am confident that our partnership with them will help further consolidate our industry leadership position.” Awarded as the ‘Best Growth Investor – 2011’ at the recently concluded Venture Intelligence APEX Awards, Gaja Capital is the lead investor behind some of the most successful Private Equity backed companies in the Education, Infrastructure Ancillaries, Financial Services and Consumer sectors.
The ‘After Sales’ car repair market is estimated to be over Rs. 20,000 crore, including over Rs.6,000 Crore of body shop and Rs. 15,000 Crore service and spares with growth at CAGR of over 20%. India’s used cars market’s worth is over Rs. 40,000 Crore and expected to grow at a CAGR of 15 – 20% in the next 5 years.
Carnation Auto has taken the lead with its 24 Auto Solution Hubs and 12 pre-owned car hubs across 16 cities in India and already serviced over 3,00,000 cars since its inception. With an eye on the latest growth story, the pre-owned car sector, the next 3 years will see tremendous growth. Carnation Auto’s e-Business portal is also playing a major role in promoting and leveraging the company’s offline business models.
Carnation Auto, already the largest player in India, is a venture-backed initiative of Mr. Jagdish Khattar and early investors include Premji Invest and IFCI Ventures. BMR Advisors were the exclusive financial advisors on this transaction.
Source: Company Press Release / 29th February 2012