Velocity Auto Restore — Executive Summary

Velocity Auto Restore seeks R165 million (R95m equity + R55m senior debt + R15m founder) to build a technology-driven, multi-location collision-repair and autobody platform in South Africa — scaling to R620 million of revenue by Year 5 at a 24% EBITDA margin, with a target equity IRR of 26–34%, a ~4.2× money multiple and a ~4.5-year payback.

Section 1 · Business Plan

Executive Summary

1.1 The Opportunity

Velocity Auto Restore Group (Pty) Ltd is being established as a
scalable, technology-enabled autobody repair and collision restoration
platform serving the South African and broader Southern African market.
The Company intends to consolidate a fragmented, insurance-driven repair
sector into a professionally managed, multi-site group operating to
original-equipment-manufacturer (OEM) repair standards. The business
model is inspired by the operational principles and customer value
proposition demonstrated by established affordable-repair operators such
as Discount Autobody and insurer-approved networks such as TCTS
Autobody.

South Africa’s collision repair industry is large, recurring and
resilient. It is underpinned by a vehicle parc of approximately 12.9
million registered vehicles, persistently high road-accident frequency,
a maturing short-term insurance market, and structural cost inflation in
parts and labour that is steadily increasing the average value of every
repair claim. Yet the supply side remains highly fragmented: the South
African Motor Body Repairers’ Association represents close to 1,000
motor body repair businesses, most of them single-site, owner-operated
workshops with limited capital, technology or insurer-integration
capability.

Investment thesis in one paragraph

Velocity will build one of South Africa’s leading independent
autobody repair groups by combining regional repair hubs, deep insurer
and fleet relationships, fast turnaround systems, technology-driven
estimating and centralised procurement — capturing the scale economics
and quality consistency that single-site incumbents cannot
match.

1.2 Business at a Glance

Parameter	Detail
Legal entity	Velocity Auto Restore Group (Pty) Ltd
Industry	Automotive services — collision repair, panel beating & spray painting
Head office	Johannesburg, Gauteng, South Africa
Business model	Multi-location autobody repair, insurance-approved collision restoration, fleet repair and vehicle refinishing
Funding requirement	R165 million
Funding structure	R95m equity, R55m senior debt, R15m founder capital
Year 5 revenue target	R620 million
Year 5 EBITDA margin	24%
Target equity IRR	26%–34%
Equity multiple (5-yr)	~4.2x
Geographic strategy	Gauteng → Western Cape, KwaZulu-Natal, Eastern Cape → SADC corridors

Table 1.1 — Summary of key business parameters.

1.3 Services & Revenue Engine

Velocity will operate a diversified but focused service portfolio
anchored on insurance-funded collision repair, supplemented by
higher-margin smart-repair and detailing services and recurring fleet
maintenance contracts. By Year 5 the group expects insurance repairs to
contribute 48% of revenue, with private retail repairs, fleet contracts,
smart repairs and detailing making up the balance — a deliberately
balanced mix that reduces dependence on any single channel.

Figure 1.1

Figure 1.1 — Projected Year 5 revenue mix by service stream.

1.4 Financial Highlights

The financial model projects rapid but disciplined growth from a
single flagship hub to a 17-site regional network. Revenue scales from
R72 million in Year 1 to R620 million in Year 5, a compound annual
growth rate of approximately 71%. The business reaches EBITDA
profitability from Year 1, crosses into net profitability in Year 2, and
expands EBITDA margin from 11% to a sustainable 24% as scale economics,
procurement leverage and bay utilisation improve.

Figure 1.2

Figure 1.2 — Projected revenue, Years 1–5 (R millions).

Figure 1.3

Figure 1.3 — EBITDA, net profit and EBITDA margin trajectory.

1.5 Why This Will Succeed

Recurring, insurance-funded demand. Collision
repair demand is non-discretionary and largely funded by third parties
(insurers and fleets), insulating revenue from consumer discretionary
cycles.
Structural fragmentation. A long tail of
sub-scale workshops creates a clear consolidation and
professionalisation opportunity for a well-capitalised group.
Insurer alignment. Insurers actively prefer
fewer, larger, accredited repairers with digital integration and
consistent quality — precisely the model Velocity is built
around.
Scale economics. Centralised parts procurement,
paint contracts, shared estimating and a group-wide management system
materially lower unit cost versus single-site operators.
Defensible moats. Insurer panel approvals, OEM
certifications, scarce skilled technicians and capital-intensive
equipment (spray booths, chassis jigs, ADAS calibration) are difficult
and slow to replicate.

1.6 The Ask

Velocity is seeking R165 million in total capital —
comprising R95 million of equity, R55 million of senior debt and R15
million of founder capital — to fund facility development, equipment,
technology, working capital and a national rollout over five years. In
return, equity investors are offered exposure to a defensible,
cash-generative platform with multiple credible exit routes, including
strategic acquisition by an insurer-backed repair group, private-equity
secondary, OEM partnership, or eventual public listing.

Figure 1.4

Figure 1.4 — Funding structure (R165 million total).

1.7 Why Now

The investment case is sharpened by timing. Three structural shifts
are converging to create an unusually favourable window for a
well-capitalised consolidator to enter the South African
collision-repair market.

Accelerating supply-side consolidation. A long
tail of sub-scale, under-capitalised workshops is being squeezed by
rising equipment, compliance and skills costs. This is thinning the
competitive field precisely as insurers seek fewer, larger, accredited
partners — opening panel positions to a scaled new entrant.
A widening skills gap that rewards scale. The
contraction in accredited specialist training capacity has made skilled
technicians scarcer and more valuable. A group that can train, attract
and retain talent at scale — through structured apprenticeships and
clear career paths — enjoys a durable advantage that individual
workshops cannot match.
Rising repair complexity and cost. Modern
vehicles with advanced driver-assistance systems, sensors and complex
materials require capital-intensive equipment and certified calibration
capability. These requirements raise the barrier to entry and favour
operators able to invest ahead of the curve — exactly the capability
this capital raise funds.

Each of these forces strengthens over time, and each rewards early,
decisive scale. The opportunity is to build the platform before the
consolidation window narrows and before insurer panels are reorganised
around the next generation of repair partners.

Confidential — this business plan is provided to prospective investors and lenders for evaluation purposes only and may not be reproduced or distributed without the written consent of Velocity Auto Restore Group (Pty) Ltd.