MyTVS, a multi-brand car service network and a subsidiary of Chennai-based $4-billion TVS Group, is raising $18 million from Mumbai-based private equity firm Kitara Capital, sources close to the development told VCCircle.
VCCirlce has learnt that Kitara Capital will take 25-30% stake in the company following the deal. When contacted to confirm the development, a MyTVS spokesperson said, he was not aware of any such development. “There are some discussions but we have not finalised anything. We will give a final picture later,” the spokesperson said. Kitara Capital declined to comment.
MyTVS is a multi-brand car service network with 16 own outlets and 43 all car services franchised outlets in Tamil Nadu, Kerala, Andhra Pradesh and Karnataka. MyTVS is into buying and selling of pre-owned cars through MyTVS Quality Used Cars, providing periodical maintenance services through MyTVS All Car Services, providing Emergency Roadside Assistance through MyTVS 24×7 Emergency Services and providing complete car body repair facility through MyTVS Collision Repair Services.
Mahindra FirstChoice Wheels Ltd, India’s largest multi-brand, pre-owned car company, last year tied up with MyTVS for executing their national 24×7 roadside assistance programme. TVS Motor Company, the flagship company of TVS Group, is the third largest two-wheeler manufacturer in India and one among the top 10 in the world, with revenue of Rs 4,424 crore in March 2010.
Kitara Capital, which commenced operation a year ago, is part of Ajit Khimji Group of Oman. The firm’s focusses on investing in medium-sized businesses across various sectors and geographies, according to its website. Kitara Capital places seed capital through its holding company, Halcyon Capital Holding Co., and has interests in direct investment opportunities as a single company investment or significant potential for return over a 3-5 year investment horizon. It focuses on investments ranging from $10 million to $40 million. The company is headquartered in Muscat, Oman and has presence in India and Dubai. Amitabh Chakraborty, formerly president – equity at Religare Securities Ltd, is the managing director and chief investment officer of Kitara Capital.
In another deal in a similar space, PremjiInvest and IFCI Venture Capital have invested Rs 108 crore ($23 million ) in Carnation Auto, a chain of multi brand auto distribution and services outlets floated by former managing director of Maruti Suzuki India Jagdish Khattar.