TVS Automobile Solutions, part of the $6 billion TVS Group, has made investments in three start-ups, that it hopes would help grab the emerging opportunities in the auto after-market business. The deal also marks the company’s big entry into digital technology.
It has invested about Rs.75 crore to pick up majority stake in three start-ups – Jazzmyride.com, a Rs.20 crore e-commerce player in auto parts and accessories business, Autosense, big data and analytics-based marketing services firm and Redsun, which is focused on developing solutions such as connected cars.
“Indian after-market is estimated at about $9 billion and has been growing at 12 per cent annually. By leveraging the technology solutions, TVS Automobile will help vehicle and parts makers to simplify complexities in the after-market business,” according to G Srinivasa Raghavan, Executive Director, TVS Automobile Solutions.
Globally, about 20 per cent of the auto industry moved to digital platforms. However, in India, it is after-market and accessories segment that is ahead of other categories to offer e-commerce solutions.
New Delhi based Jazzmyride has been dealing with parts and accessories for cars and bikes. It has exclusive partnerships for certain brands, while it markets own labels too. Leading e-commerce players such as Amazon and AskMeBazaar have tied-up with Jazzmyride, which has built a strong supply chain in the backend.
Autosense seeks to provide analytics solutions that will help improve efficiency in parts business and bring down cost of operating expenses for fleets. Bangalore-based Redsun Telematics has developed an integrated platform for vehicle and service management.
The three new businesses put together are expected to generate revenues of about Rs.250 crore over the next three years.