Venture Catalysts Achieves 2.1x Returns in 1.5 Years, Announces Full Exit from Koovers

• ByStartupStory     |    September 11, 2023

Early-stage investment firm Venture Catalysts (Vcats) has successfully exited its investment in Koovers, a prominent B2B e-commerce platform specializing in auto spare parts. This exit has yielded impressive returns of 2.1 times the investment in just a year and a half.

The exit was realized following Koovers’ acquisition by Schaeffler India Ltd, a subsidiary of the renowned German automotive giant Schaeffler Group and a prominent manufacturer of industrial and automotive components. The acquisition, which took place in August 2023, saw Schaeffler India Ltd acquire Koovers for a total of Rs 142.4 crore.

Vcats had initially invested in Koovers during its pre-series A funding round in early 2022, utilizing its Angel Fund and garnering investments from various other Angels and family offices directly involved with the company. The successful acquisition has provided an exit opportunity for all investors, including Inflection Point Ventures, Venture Fund, and JPIN, among others.

Koovers, founded in 2015 by Vinayak YB, Sandeep Begur, and S Prem Kumar, operates as a B2B e-commerce platform specializing in the distribution of auto spare parts to independent auto workshops (IWS) and the broader aftermarket ecosystem. In the fiscal year 2022-23, Koovers reported impressive revenues of Rs 77 crore. The platform serves a network of over 7,000 workshops and boasts a portfolio comprising approximately 1.8 million parts from diverse manufacturers.

Dr. Apoorva Ranjan Sharma, founder and managing director of Venture Catalysts, expressed his satisfaction with the exit, highlighting Koovers’ unique position as a startup that addresses a significant challenge within the automotive aftermarket segment while consistently delivering robust financial performance. He emphasized that the acquisition provided investors with an exceptional opportunity, yielding returns of over 2.1 times the initial investment in a relatively short span of 1.5 years. This achievement holds substantial positive implications for the broader startup ecosystem.

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