Startup investment bank for the emerging markets JPIN VCATS has completed a significant fundraise for Koovers, India’s largest B2B spare parts service based in Bengaluru. Koovers announced raising $1.5 million, with JPIN VCATS as one of the main investors. The zero-inventory firm was launched in 2016 to address a $12 billion market and is now one of India’s fastest-growing companies servicing one of the country’s most disorganised sectors. The Automobile and Mobility market in India accounts for 49% of manufacturing GDP and 7.1% of total GDP, making it a key market to address in what is a growing and ever more mobile economy.

Koovers works with aftermarket car repair garages to provide high-quality spare parts and to help the garages source hard to find spares quickly, and at low costs that they are able to pass on to the consumer. The investment will be used to expand into further cities across India from their base in the south of the country and eventually into international territories including the UK.

The future of the business, alongside further expansion in a market growing at 10% a year, will include software offerings for the 300,000 garages in India to improve customer experiences. Koovers will also look to expand into offering insurance, used cars, finance and recovery as a key part of their business model. They will also be looking to expand partnerships with industry leaders, building on a recent partnership with Petronas Lubricants.

Gaurav Singh, the co-founder of JPIN VCATS, says:

“This is an incredibly exciting raise for Koovers that we hope will take the business to the next level in its domestic and international growth journey. The business provides a platform that allows for the digitisation of one of the last remaining industries to benefit from centralisation and automation. Joining a market with such large potential and one with a tremendous amount of growth in the future makes this an incredibly exciting sector to be able to offer a one-stop-shop for a number of services. We can’t wait to help Koovers on this journey in the near future and beyond.”

Sandeep Begur, Co-Founder & CEO of Koovers, says:

“India is a booming second-hand market, which has created a market that is ripe for centralisation and digitalisation. Koovers is ideally suited for the used-car and post-warranty market, the combination of this opportunity and our expertise is what has led to huge growth in the business.”

“This investment raise will enable Koovers to take the next step in our growth throughout India and beyond, which we can’t wait to get started. The decision to work with JPIN VCATS was simple, they understood the model quickly and are always just a call away, whether to talk about new ideas or help find an expert at short notice. The partnership also opens doors for us to international markets which are a big part of our plans, with the next destination being the UK, where JPIN VCATS have strong connections.”