CarZ, a Hyderabad-based start-up which is into multi-brand auto solutions space, is looking at raising Rs 120 crore (around $25 million) from PE (private equity) players by February 2013.
"We are currently under discussions with multiple PE investors from India as well as abroad, who have shown interest in us. We may raise the money from a single investor or multiple investors, but nothing has been finalised yet," Venu Donepudi, co-founder and managing director of CarZ, told Business Standard.
Currently, the company has 16 CarZ outlets, its exclusive auto solutions outlets, across Andhra Pradesh, Karnataka and Kerala. "We have plans to add another 34 outlets with an investment of Rs 45 crore over the next two years across the southern and western Indian markets including Gujarat, Maharashtra and Tamil Nadu," he said.
"Each of the 1,000-sq yard CarZ outlets requires an investment of around Rs 1.2 crore. So, part of the second-round funding will be used for setting expansion of these outlets and to have a pan-India presence," he added.
CarZ, which commenced operations in February 2010 from Hyderabad, had raised $5 million (Rs 22.5 crore) in a series-A funding from IndoUS Venture partners this year.
The multi-brand car servicing stations is catching up in the country, as the after-market services networks for many of the auto needs of the customers. Currently, only one-third of the cars that are sold by the dealerships go back to the dealerships, post-warranty.
"The company targets to achieve Rs 20 crore turnover by this year-end. We have been growing at 400 per cent year-on-year, and we expect a similar growth to follow in the coming years," he added.
Today, it has entered the Kerala market by opening its first outlet in Kochi, its 16th outlet in the country. "We plan to open another six outlets in Kerala over next one year," he said.