India boasts of being the global leader in two-wheeler manufacturing, with over 20 million units being sold annually, as per SIAM data. Amidst this rapid market growth, the demand for pre-owned two-wheelers has consistently increased over the years. However, this sector lacks organized players, presenting an opportunity that Narain Karthikeyan, India’s pioneering Formula 1 racing driver, and his childhood friend, Christopher Anand Sargunam, capitalized on with DriveX in 2020.
Born out of a lockdown-induced meeting, Coimbatore-based startup DriveX aims to democratize affordable mobility solutions. Christopher, the Co-founder, CTO, and COO of DriveX, brings his wealth of experience in managing digital and tech projects at leading institutions like Lehman Brothers, Nomura, and the Royal Bank of Scotland.
Initially, DriveX served as a digital platform that offered two-wheelers to customers via a subscription model, presenting an all-inclusive monthly fee that included maintenance, insurance, and tyre and battery replacements. In 2021, the startup pivoted to refurbishing used two-wheelers, providing a comprehensive package including warranty, finance, after-sales service, and documentation.
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Understanding the consumer preference for traditional ownership, particularly in Tier II cities and below, Karthikeyan and his team began addressing the prevalent challenges in the pre-owned two-wheeler market. DriveX developed a robust business model encapsulating sourcing, refurbishment, finance assistance, and technology to set it apart in the mobility space.
Through DriveX Technical Centres, the company offers state-of-the-art refurbishment facilities that ensure thorough maintenance and evaluation of the vehicles using a 120-point checklist. Post-refurbishment, DriveX assists customers with finance options, offering instant loan approval and lower interest rates.
Despite the challenges posed by the unorganized used two-wheeler market, DriveX is striving to establish a transparent and sustainable ecosystem for renewed two-wheelers. Collaborating with OEMs, banks, NBFCs, insurance companies, and service providers, DriveX works to ensure customer satisfaction.
Backed by its initial bootstrapped phase and subsequent Series A funding round, DriveX has seen remarkable growth. Within a year of its launch, the startup has grown 40% M-o-M and anticipates retail transactions of over 7,000 vehicles annually. With plans to expand its network of outlets and refurbishing centres, DriveX aims to scale up 10X in the near future.
This news is based on an article from the YourStory website.
