DriveX, an integrated pre-owned two-wheeler platform backed by TVS, has allocated approximately ₹4 crore this year to establish four technical facilities across the country. This investment aims to expand its refurbishing capacity to 5,000 vehicles, once all five tech centres are fully operational, a top executive of the company told businessline.
Currently, it has one facility operational in Coimbatore, a unit with a refurbishing capacity of 400–450 vehicles monthly in one shift, said Christopher Sargunam, co-founder of the company. It is planned to add some more shifts in the next six months.
“We will invest close to ₹1 crore to set up each technical centre, and the next in the pipeline is the Hosur one. Other geographies of interest include Delhi NCR and the Mumbai-Pune belt,” he explained.
The company was incorporated in 2020 as a two-wheeler subscription platform, providing affordable and flexible mobility solutions, and presently offers its services in five cities. In 2022, TVS Motor Company invested ₹85.41 crore for a 48.27 per cent stake in DriveX.
Growth
The start-up has a headcount of around 100 people and plans to recruit another 100 people this year as it plans to add more technical centres. In FY23, it generated an annual turnover of around ₹14–16 crore. “Our focus is on our current business scope, and we are quite steadfast about delivering some of the numbers that we want to deliver. We would like to plan and achieve 10x year-on-year growth. “We will have to maintain a certain amount of focus, in order to deliver,” said Sargunam.
According to the company, in India, for every new 2W vehicle bought, two pre-owned vehicles are purchased. The market is estimated to reach $10 billion by 2025. The pre-owned 2-wheeler purchase experience has become too flaky with a lack of transparency and trust, and it aims to deliver a better customer experience.
