VOC Automotive Secures Rs. 1.5 Crore Funding from CWI

VOC Automotive, a burgeoning startup in the two-wheeler service industry, has raised Rs. 1.5 crore in funding from Corporate Warranty India Pvt Ltd (CWI). This strategic investment is earmarked for the company's expansion efforts, promising to bring affordable, quality services closer to two-wheeler users across India.

Founded in October 2019 by Venkatesh B M and Lokesh S, VOC Automotive addresses a critical gap in the market: the high cost and limited proximity of authorized service centers for two-wheelers. Both founders, coming from humble beginnings, recognized the struggle of maintaining two-wheelers without breaking the bank. This insight led them to create a solution that combines affordability, accessibility, and quality.

Innovative Solutions for a Common Problem

VOC Automotive offers a comprehensive range of services, including general and major servicing, painting, denting, and specialized coatings, at 30% lower charges than typical service centers.The startup also introduced an industry-first extended warranty program: six months for engine oil replacement and two years for other major services. This warranty is available for vehicles manufactured from 2015 onwards.The company's digital initiatives include the VOC Smart Rider app, enabling 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 enhance accessibility.

Overcoming Challenges and Achieving Growth

Despite launching just before the COVID-19 pandemic, VOC navigated early challenges and managed to open its first outlet in August 2020. Since then, the startup has experienced exponential growth, expanding to 127 outlets across South India, with a significant presence in Bangalore, Hyderabad, Karnataka, Telangana, Andhra Pradesh, and Kerala.

"Starting with one outlet during the pandemic was tough, 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 Milestones and Future Plans

VOC Automotive's revenue growth reflects its successful business model. The company recorded 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 Insights and Market Potential

The investor from Corporate Warranty India Pvt Ltd (CWI) stated, “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 added, “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 Collaborations and New 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.