In its second round of external private equity (PE) fund raising, Mahindra First Choice Wheels Ltd (MFCWL) sold a minority stake to San Francisco-based investment advisor firm Valiant Capital for ₹94 crore.
Fund raisingMFCWL plans to use the capital to fund its growth plans over the next few years. The company, which is Mahindra & Mahindra (M&M) group’s a multi-brand used vehicle retailer, had raised an external PE from Delhi-based Phi Capital in 2008. Phi Capital continues to be an investor in the company, it said in a statement.
“MFCWL is yet another example of innovation and entrepreneurship within the group, where new business models are being explored and implemented with persistence. It is exciting to see marquee investors attracted to MFCWL and participating in its growth story where much is yet to come,” said M&M Chairman and Managing Director Anand Mahindra.
Founded by Anand Mahindra, who is also the chairman of MFCWL, the company has a hybrid business model with both online and physical presence.
MFCWL intends to use the fresh funds to grow both its physical network and adopt technology-enabled products and services. The company has plans to end this fiscal with 500 franchise outlets and increase them to about 1,800 outlets in the next five years.
Valiant Capital Management, which had earlier invested in companies such as Yatra Online, Shriram Housing Finance, FreeCharge and First Cry in India, has more than $2.5 billion assets under management.