VOC Automotive Secures 1.5 Cr Funding to Boost South India Expansion

VOC Automotive, a rapidly growing startup in the two-wheeler service sector, has successfully secured Rs. 1.5 crore in funding from Corporate Warranty India Pvt Ltd (CWI). This pivotal investment will support VOC's ambitious plans to expand its footprint and bring cost-effective, high-quality services closer to two-wheeler owners throughout India.

VOC Automotive Funding

Founded in October 2019 by Venkatesh B M and Lokesh S, VOC Automotive was established to tackle the high costs and limited availability of authorized two-wheeler service centers. Both founders, drawing from their modest backgrounds, understood the financial burden of maintaining two-wheelers and envisioned a solution that combines affordability, accessibility, and quality service.

VOC Automotive offers a wide array of services, including general and major servicing, painting, denting, and specialized coatings, at rates 30% lower than typical service centers. They have also introduced an industry-first extended warranty program covering six months for engine oil replacement and two years for major services, applicable to vehicles manufactured from 2015 onwards. The company's digital innovations include the VOC Smart Rider app for booking doorstep delivery or nearby service center appointments and the VOC Smart Dealer app to aggregate hyperlocal service centers.

Navigating Early Challenges and Achieving Growth

Launching just before the COVID-19 pandemic posed significant challenges for VOC Automotive, yet the company opened its first outlet in August 2020. Since then, VOC has expanded rapidly to 127 outlets across South India, with strong presences in Bangalore, Hyderabad, Karnataka, Telangana, Andhra Pradesh, and Kerala.

"Starting with a single outlet during the pandemic was tough, but our perseverance paid off. Our proven franchise model and continuous profitability make us an attractive investment for partners like CWI," said Venkatesh B M, Co-Founder of VOC Automotive.

VOC Automotive Financial Growth and Future Plans

VOC Automotive's revenue trajectory underscores its successful business model. The company reported Rs. 2 crore in FY-22, Rs. 2.7 crore in FY-23, and an impressive Rs. 10 crore in FY-24. With an aggressive expansion strategy, VOC aims to reach Rs. 100 crore in revenue by FY-25, planning to establish 300 outlets nationwide, including in North and West India.

"We're thrilled about our partnership with CWI. This funding will accelerate our expansion and help us serve more customers while maintaining our high standards for quality and affordability," Venkatesh added.

Investor Confidence and Market Potential

A spokesperson from Corporate Warranty India Pvt Ltd (CWI) expressed strong confidence in VOC Automotive’s business model, which aligns with CWI's post-sale customer retention programs.

"VOC's approach to organizing and standardizing the unorganized two-wheeler market in India presents vast untapped potential. With the rise of EVs, we see significant opportunities for VOC and anticipate substantial returns on our investment," they said.

VOC is also focusing on strategic partnerships with insurance companies for accidental claims, EV companies for service agreements, petroleum companies, and OEM companies. Additionally, the VOC Smart Rider app aims to onboard 10,000 customers this financial year. The startup is also planning to launch a vertical for buying and selling pre-owned two-wheelers, further diversifying its service offerings and market reach.

This new phase of funding and expansion marks a significant milestone for VOC Automotive, positioning it for continued growth and success in the competitive two-wheeler service industry.

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