Cross Roads to raise $25 mn in Series A funding

Company wants to use proceeds to support expansion plans for next three years

Emergency roadside assistance company Cross Roads plans to raise $25 million in Series A funding to support expansion plans for next three years.

The company is in talks with international as well as domestic investors for the same.

The company had received a funding of $1.5 million from Sixth Sense, a fund set up by Nikhil Vora, former managing director of IDFC Securities.

The Delhi-based company has a subcriber base of 250,000 under its B2C business and operates through owned and co-branded network of over 18,000 workshops in 29 cities.

"We are now getting aggressive on expansion and the focus is to acquire new customers. We have set a target to expand subscriber base to a million customers by FY17", said Harish Lakhera, founder and chief executive officer of the company.

 

The company clocked a revenue of Rs 14.5 crore last year. Lakhera said the company has posted profits every year since inception in 1999 and enjoys an EBIDTA margin of 15-17 per cent. Croos Road is eyeing revenue of Rs 80 crore by FY18.

The company offers roadside assistance package for cars and two-wheelers. Two-wheelers, however, accounts for a low share of about seven per cent in the subscriber base. Lakhera said the company will tie up with two leading two-wheeler manufacturers to become a B2B service provider to their customers under the warranty period.