Mumbai, June 24 Auto major Mahindra & Mahindra on Tuesday announced that it raised Rs 80 crore through a private placement in its subsidiary, First Choice Wheels, the chain of multi-brand pre-owned cars outlets. The funds raised will be used to finance the roll out of First Choice’s chain of 300 owned and franchise outlets across the country, said a company statement.
The private placement agreement was inked with Phi Advisors, which is promoted by Mr Anupam Thareja and Mr P. Sivaram. HDFC, and Sah and Sanghi Automobiles are the other promoters of First Choice.
Mahindra introduced the after-market sector in April to capitalise on the business opportunity of selling multi-brand pre-owned cars and to subsequently provide spares and service support.
First Choice is at the threshold of its next phase of growth and the infusion of funds and a partner like Phi will help consolidate leadership in the multi-brand pre-owned car industry, according to Mr Rajeev Dubey, President (After-market Sector).
The Rs 30,000 crore pre-owned car market is expected to reach a size of Rs 50,000 crore in the next 5 years.