Economic factors to benefit Tyremarket
Tyremarket.com is set to raise funds from UK and local investors this year in 2018 for its strategic push to be a top player in the country’s tyre markets.
It is led by former Siemens Healthcare engineering executive, Sanjeev Agrawal and backed by Blackcircles.com founder Mike Welch, who sold the UK online tyre retailer to Michelin in 2015,
Tyremarket.com is well positioned to benefit from a number of macro factors including strong projected growth for India’s overall economy, a tyre replacement market characterised by high fragmentation and inefficiencies and domestic vehicle ownership growing by around 7% per annum.
By 2020, Ernst and Young (EY) predicts that there will be almost 750 million internet users in India with average household income rising 40%.
Market research also indicates that towards 30% of all payments will be made digitally by 2020, with PWC estimating that online spending will exceed US$125 billion.
India is already the second largest internet user in the world with around 400 million active mobile users. With the cost of smartphones and data plans on the decrease, India is already the second largest number of smartphones worldwide.
Sanjeev Agrawal, CEO and co-founder of Tyremarket.com, said: “Indian consumers are becoming more value aware and better informed about their choices.
“Our strategy to provide more tyre choices, more installation partners and great value is starting to pay real dividends.
“With the help of our early investors we have created an exciting platform from which we can invest wisely to ensure our position as the leading online platform for tyre business in India,” he elaborated.
Tyremarket.com operates a lean business model similar to UK market leader Blackcircles.com. Zero warehousing, low logistics costs and a rapidly growing nationwide network of sellers and fitting partners combined with the leveraging of existing industry relationships and enhanced buying power. This means Tyremarket.com can offer motorists the most compelling proposition in the Indian online tyre market.
Michael Welch, strategic adviser to Tyremarket.com, said: “Tyremarket.com has a fantastic opportunity to be the market leader for tyres in India.
“Its team, vision and ambition are second to none and I’m delighted to be able to help them in their goal to become India’s go-to resource for all things tyres,” he said.
Full Circle Partners, a corporate advisory firm with offices in Edinburgh and Singapore, is advising the Tyremarket.com board on the funding round. fii-news.com
