Mahindra First Choice sells stake to PE company

Mahindra First Choice Wheels (MFCWL), a multi-brand used car entity, today announced the sale of a minority stake in the company to US-based Valiant Capital for $15 million (Rs 94 crore).

This is the second round of external private equity raised by MFCWL, which has a network of nearly 500 franchise outlets. The first one came in 2008 from Delhi-based Phi Capital, who continues to be an investor.

The company plans to use the fresh funds infusion to accelerate its growth both of the physical network as well as adoption of its technology enabled products and services used by all stakeholders in the industry - NBFCs, banks, OEMs, dealers and consumers.

Rajeev Dubey, president (Group HR, Corporate Services and After Market), Mahindra & Mahindra said, "We believe the brick and click ecosystem is very powerful in the used car business and over the years we have seen our consumers and dealers appreciate this value proposition. We will continue to invest in the overall growth of the hybrid model in the years to come".

By the end this financial year MFCWL's used vehicle volumes sold will be 140,000 between its retail and wholesale and it will complete Autoinspekt inspections.