The company said that it will acquire the stake in Nkars Mobility Millennial Solutions (NMMSPL), which operates the brand ‘DriveX'.

The aggregate cost of acquisition is Rs 85,41,47,756 to obtain 48.27% stake in NMMSPL by way of primary and secondary investments. The indicative time period for completion of the acquisition is 30 November 2022.

NMMSPL is a private company incorporated in India, engaged in leasing two-wheeler motorcycles and scooters and selling, trading, and distributing pre-owned two-wheeler motorcycles and scooters. NMMSPL operates a digital platform ‘DriveX' which provides two-wheelers to customers on a sub-scription model for a flexible tenure and on a purchase model, along with certain ancillary services. The company registered a turnover Rs 8.68 crore in FY 2021-22 and Rs 47.98 lakh in FY 2020-21.

TVS Motor said that it sees a strong potential in the pre-owned two-wheeler market, which is witnessing a structural shift from the unorganized to the organized sector. The pre-owned two-wheeler market is growing rapidly and has garnered high levels of investor and customer interest in recent years, driven by digitization and emergence of start-ups. This investment in DriveX is aimed at enabling innovative solutions to lead this transformation, it added.

Sudarshan Venu, managing director of TVS Motor Company, said, “The pre-owned two-wheeler market is largely unorganized today. It is delightful to see what DriveX has been able to create and deliver in short time. Narain and his team have built a unique platform that can scale up quickly. 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.”

Speaking on the occasion, Narain Karthikeyan, founder and CEO of DriveX said, “DriveX is a digital first business, serving all brands with unique 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.”

TVS Motor Company is a reputed two and three-wheeler manufacturer globally. The company has four manufacturing facilities in Hosur, Mysuru and Nalagarh in India and Karawang in Indonesia.

The company reported a standalone net profit of Rs 321 crore in Q1 FY23 as against a net profit of Rs 53 crore in Q1 FY22. Operating revenue was Rs 6,009 crore in the quarter ended June 2022 as against Rs 3,934 crore reported in the quarter ended June 2021, up 52.7% YoY.

Shars of TVS Motor Company were down 0.31% to Rs 954.95 on the BSE.