Schaeffler to acquire aftersales B2B e-commerce platform Koovers in India

2023-08-28 | Herzogenaurach

• Acquisition of the fast-growing B2B e-commerce platform Koovers enables Schaeffler to expand into the digital business in India
• Ideal addition to Schaeffler’s future aftersales activities in India and key enabler for the aftermarket ecosystem
• Koovers will retain its brand and a high degree of autonomy
• Acquisition of 100 percent of the shares of KRSV via a share purchase agreement by Schaeffler India

Schaeffler India Limited, a subsidiary of Schaeffler AG, signed a share purchase agreement to acquire 100 percent of the shares of KRSV Innovative Auto Solutions Private Limited (“KRSV” in the following). KRSV is headquartered in Bengaluru and offers repair solutions to Indian aftermarket workshops via its fast-growing B2B e-commerce platform Koovers. Koovers is an ideal addition to Schaeffler Automotive Aftermarket’s activities in India. It will be a key addition to the aftermarket ecosystem – distribution partners included – and will enable Schaeffler to harness growth in the fast-evolving aftermarket digital landscape.

Schaeffler’s Automotive Aftermarket division supplies components and holistic repair solutions to workshops worldwide. With an overarching understanding of systems and comprehensive services, Schaeffler Automotive Aftermarket contributes to extending the service life of vehicles.

Founded in 2015, KRSV created the fast-growing e-commerce platform Koovers. With revenues of 3.7 million euros in 2022 and revenues of around 10 million euros expected for 2023, the company is a compelling growth story and one of the major players in the Indian B2B e-commerce market. Koovers supplies over 7000 workshops and has a portfolio of around 1.8 million parts from various manufacturers. Upon acquisition, the platform will retain its independent branding and a high level of autonomy. The company founders will remain with KRSV after the acquisition.

The Indian market is one of the fastest growing economies in the world, with a vivid startup ecosystem, technology services, digital and manufacturing sectors, and a rapidly growing workforce. Overall economic growth is supported by high e-commerce penetration linked with strong indicators for the automotive aftermarket. Digital penetration in this market is expected to increase from 1 percent in 2022 to 7 to 10 percent in 2030. The entire evolution of car parc and average car age will lead to a 75 percent increase in the automotive aftermarket in India by 2030.

Under the share purchase agreement, Schaeffler India Limited will acquire 100 percent of the shares of KRSV Innovative Auto Solutions Private Limited for a total consideration of a low double-digit million euros purchase price. The transaction is expected to be completed before the end of the third quarter of fiscal year 2023 and is subject to customary closing conditions. The acquisition will be fully funded by Schaeffler India’s own cash generation.

"With great excitement, we announce the signing of the acquisition of KRSV, an important move aimed at strategically enhancing the creation of value through our cutting-edge repair solutions for our valued customers in India. Throughout our journey, Schaeffler Automotive Aftermarket has remained focused to streamline workshop operations through its innovative product range and solutions. This ambition is powerfully reinforced by the innovative digital offer that KRSV has brought to the table with its platform Koovers, continuing to drive our joint mission," said Mr. Jens Schüler, CEO Automotive Aftermarket Schaeffler AG.

“This acquisition seamlessly aligns with Schaeffler India Limited's strategic endeavors within a dynamic economy. KRSV’s digital expertise is evident in its B2B e-commerce platform Koovers, providing workshops with seamless access to sourcing repair solutions. Koovers will maintain its brand identity, neutrality, and a significant degree of autonomy to ensure the delivery of a broad and diverse product portfolio. We warmly welcome the whole team into the Schaeffler Group, united in our pursuit of excellence," commented Mr. Micah Shepard, President Schaeffler Automotive Aftermarket in the Asia-Pacific region.

Mr. Sandeep Sheshadri Begur, Managing Director and Co-founder of Koovers said: “Since our foundation eight years ago, we have scaled our business through innovative solutions and offerings. Becoming a part of Schaeffler Group will help us to expand our market coverage and depth as well as extend our product portfolio across the automotive aftermarket in India. We are delighted to be part of Schaeffler Group and are committed to creating value for all stakeholders."

Forward-looking statements and projections
Certain statements in this press release are forward-looking statements. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial consequences of the plans and events described herein. No one undertakes any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. You should not place any undue reliance on forward-looking statements which speak only as of the date of this press release. Statements contained in this press release regarding past trends or events should not be taken as representation that such trends or events will continue in the future. The cautionary statements set out above should be considered in connection with any subsequent written or oral forward-looking statements that Schaeffler, or persons acting on its behalf, may issue.