Crossroads in talks to raise USD 25 mn to fund expansion

Roadside assistance services firm Crossroads India Assistance plans to raise around USD 25 million (about Rs 165 crore) to fund technology-led expansion, including setting up of new business verticals.
The capital-based company, which currently offers roadside assistance package for cars and two-wheelers, is in the process of transitioning from simply being a car helpline to a one-stop shop for all vehicle related problems.
"We are in advance round of talks with various venture capitalists to raise USD 25 million. We want to utilise the capital to expand our retail business as well as add new business verticals over the next two years," Crossroads Chief Operating Officer Punit Sharma told PTI.

As part of the expansion plan, the company is looking to tie up with car makers to provide roadside assistance during the warranty period as well as bring together around 18,000 mechanics and 5,000 garages via mobile app, he added.
With plans to diversify its business, the company is aiming for a six-fold increase in its revenues to around Rs 90 crore over the next two years from Rs 15 crore sales revenue that it posted in the last fiscal.
"We currently have around 72 per cent market share in the out of warranty vehicle road side assistance market. With these tie-ups with OEMs, we will further increase our market share," Sharma said.

Through all these measures, the company aims to increase its customer base to around 10 lakh over the next two years, he added.

"Crossroads is growing its own infrastructure and also inorganically through a rapidly expanding 'point of sale' and service, (POSS) infrastructure and creating the largest network of workshops in India," Sharma said.
Earlier this year, Crossroads had received a funding of USD 1.5 million from Sixth Sense, a fund set up by Nikhil Vora, former managing director of IDFC Securities.
The company started operations 16 years back in 1999 and today has B2C operations in 12 cities, network presence in 30 cities across India and nearly 250 company-owned-company- operated vehicle.