VOC Automotive, an emerging player in the two-wheeler service industry, has successfully raised Rs. 1.5 crore in funding from Corporate Warranty India Pvt Ltd (CWI). This strategic investment will fuel the company’s expansion efforts, bringing cost-effective, high-quality services closer to two-wheeler owners across India.
Company Origins and Mission
Founded in October 2019 by Venkatesh B M and Lokesh S, VOC Automotive addresses the need for affordable and accessible service centers for two-wheelers. Both founders, with their modest backgrounds, understood the challenge of maintaining two-wheelers without incurring high costs. Their solution emphasizes affordability, accessibility, and quality.
Innovative Service Solutions
VOC Automotive provides a comprehensive range of services, including general and major servicing, painting, denting, and specialized coatings, at rates 30% lower than typical service centers. The startup introduced an industry-first extended warranty program: six months for engine oil replacement and two years for other major services, applicable to vehicles manufactured from 2015 onwards. Their digital initiatives include the VOC Smart Rider app, allowing customers to book services for doorstep delivery or at the nearest VOC service centers, and the VOC Smart Dealer app, which aggregates hyperlocal service centers to improve accessibility.
Navigating Challenges and Achieving Growth
Despite launching just before the COVID-19 pandemic, VOC Automotive overcame initial hurdles and opened its first outlet in August 2020. Since then, the startup has expanded to 127 outlets across South India, including significant presences in Bangalore, Hyderabad, Karnataka, Telangana, Andhra Pradesh, and Kerala.
“Starting with one outlet during the pandemic was challenging, but our perseverance paid off. We now have a proven franchise model and continuous profitability, making us an attractive investment for partners like CWI,” said Venkatesh B M, Co-Founder of VOC Automotive.
Financial Performance and Future Goals
VOC Automotive’s revenue trajectory showcases 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. The startup aims to reach Rs. 100 crore in revenue by FY-25, supported by an aggressive expansion plan to establish 300 outlets nationwide, including new regions in North and West India.
“We’re excited about our collaboration with CWI. This funding will accelerate our expansion and help us serve more customers while maintaining the high standards we’ve set for quality and affordability,” Venkatesh added.
Investor Perspective and Market Potential
An investor from CWI remarked, “VOC Automotive’s business model aligns with our post-sale customer retention programs. Given our shared industry experience, we understand the potential of this business and its growth scalability. We have strong faith in the founders and their vision for VOC. Their automotive background and experience with OEMs provide them with unique insights into customer challenges and market opportunities.”
The investor further noted, “The unorganized market for two-wheelers in India presents vast untapped potential. VOC is working to organize and standardize this segment, adding new services for the dealer network and new business lines. With the rise of EVs, there is significant potential for companies like VOC. We anticipate substantial returns from this investment in the near future.”
Strategic Partnerships and Future Ventures
VOC is also focusing on strategic collaborations with insurance companies for accidental claims, EV companies for service partnerships, petroleum companies, and OEM companies. Additionally, the VOC Smart Rider app plans to onboard 10,000 customers this financial year, and the startup will soon introduce a vertical for buying and selling pre-owned two-wheelers.4o
