To create a single platform and get the entire aftermarket industry, from the end consumer to the parts, retail supply chain to the garages and linking with the suppliers, TVS Automobile Solutions (TVS ASL) has announced the formation of a new digital subsidiary – Ki Mobility Solutions.
‘Ki’ implies ‘life or vital force,’ and TVS ASL believes it is a life force of the independent automotive aftermarket industry.
The newly formed entity that raised INR 85 crore from tech investors led by - Pratithi Investment Trust (represented by its trustee Kris Gopalakrishnan, co-founder of Infosys) and SeaLink Capital Partners (SCP), will operate in India to start with and go beyond boundaries in the years to come. While the company itself will roll out this solution in the developing markets, it will be through partnerships in other markets.
Ki Mobility Solutions, the full-stack O2O (online-to-offline) digital platform, is the subsidiary of TVS ASL and will offer quality, standardised, and cost-effective service to vehicle owners of two-wheelers cars and commercial vehicles across the country.
R Dinesh, Director, TVS Automobile Solutions, said the pandemic is not the critical reason to introduce Ki, but it has speeded up the process. He calls this a full-stack solution as it enables the entire ecosystem of parts retailers and garages to benefit from working closely with the company as a single platform. It will allow them to source parts and understand digitally the nuances of interacting with the suppliers directly and link with end consumers. In addition, the company is planning to integrate digital learning and bring in the working capital products that will help the trade, Dinesh added.
Alongside TVS, ASL has announced 100% acquisition of goBumpr, one of the largest B-to-C service aggregation platforms. With this, Ki will become a one-stop-shop for all service requirements to automobile owners to access high-quality repair management services, parts, accessories, tyres, batteries, insurance and on-demand roadside assistance across the country.
Customer base
Besides, the company with over three million customers aims to increase to 10 million by FY 25. As for the offline model, with the recent acquisition of Mahindra First Choice (MFC), the company has successfully rebranded the MFC network into myTVS fold, thereby creating one of the largest multi-brand service networks across 270 towns in the country. Dinesh said over 60% of the franchises have digitally integrated with TVS ASL.
G Srinivasa Raghavan, Managing Director, TVS ASL, said Ki will provide quality, transparent and cost-effective first-time-right service solutions to vehicle owners with the convenience of thousands of organised multi-brand garage owners in 270 towns across the country. The unique O2O business and technology model will create significant value to all stakeholders - individual vehicle owners, garage owners/retailers alike and in helping parts manufacturers to increase their market share.
Aggressive growth
Before floating Ki, the parts/service franchise and online aggregation businesses had a turnover of INR 575 to INR 600 crore last year. Forming Ki will help cross INR 1,000 crore in FY22.
ASL as a business closed FY21 with INR 1,180 crore, and the company sees a lesser growth in the traditional business model. However, Ki is forecast to grow by about 50% CAGR in the next three years.