Mahindra First Choice gets strategic investment from Cox Automotive

US-based Cox Automotive has made a significant strategic investment in Mahindra First Choice Wheels Ltd (MFCWL), a multi-brand certified used car company. The transaction was done through a secondary sale, with HDFC and Phi Capital being the participants.

Commenting on the partnership, Anand Mahindra, chairman of Mahindra Group said, “We founded MFCWL as a startup with a vision to revolutionize the way that pre-owned cars are bought and sold in India. This strategic investment by Cox Automotive reflects the strong progress made by us over the last few years. We look forward to a long term partnership with them based on our shared values.”

MFCWL now has over 650 franchise outlets in 300 towns across India. Recently, it launched a commercial vehicle franchise business in addition to its industry leading multi-brand pre-owned passenger cars business. Over the last three years, it has pioneered the use of technology to deliver industry first solutions such as Indian Blue Book for pricing solutions and Autoinspekt for inspection services.

Cox Automotive is a US-based company providing digital marketing, classifieds, software, wholesale and eCommerce solutions to dealers, consumers, manufacturers and financial institutions.

Rajeev Dubey, CEO, aftermarket sector, group president, hr & corporate services and member, group executive board said, “We are delighted to have Cox Automotive make an investment in MFCWL. The fact that an entrepreunerial venture like MFCWL is attracting PE and strategic investments validates our belief that we at Mahindra have a flourishing entrepreunerial ecosystem creating real value.”

“Our investment in Mahindra First Choice Wheels Ltd. furthers Cox Automotive’s strategic plans to create and grow used vehicle marketplaces,” said Joe Luppino, chief corporate development officer for Cox Automotive. “This opportunity allows us to partner with a company that has a reputation for delivering high-quality used car products and services to dealers and consumers in the fast-growing Indian automotive market.”

Also commenting on the investment was Nagendra Palle, CEO and MD, MFCWL, “It’s heartening to see Cox Automotive enter India with MFCWL. We see deep synergy between the two organizations and aim to leverage their global presence and expertise to take MFCWL to the next level.”