Mumbai-based online automobile classifieds platform, CarTrade’s parent company MXC Solutions, has acquired vehicle inspection and valuation venture Adroit Inspection in an all-cash deal.
As per an ET report, the acquisition was completed three months ago right after CarTrade raised $55 Mn in a fresh round of funding led by Singapore-based Temasek, and a US-based family office.
Founded in 2010 by Vinay Sanghi, CarTrade.com, provides buyers and sellers a structured platform for buying and selling new and used vehicles. It acquired rival Carwale in January 2016.
Sanghi confirmed the acquisition to ET but declined to share details, including the transaction size, citing confidentiality agreements. He said, “Adroit Inspection is the country’s largest auto inspection company and is expected to inspect 1 Mn vehicles this year. We also have our car certification business and this acquisition is a huge strategic fit for us.”
As per the report, Adroit Inspection undertakes inspection and valuation of automobiles for clients including banks, insurance companies, and NBFCs. It claims to have over 300 inspectors across the country.
On the other hand, as per a company statement CarTrade claims to have 15 Mn unique customers per month, and has about 8,000 new and used car dealer partners. The platforms list more than 200K used cars for sale and auctions over 200K vehicles to the wholesale market every year.
Last year in January, it raised $145 Mn (INR 950 Cr.) in a funding round from Singapore state investor – Temasek Holdings, US-based investment firm – March Capital – and existing investor Warburg Pincus and JP Morgan.
According to an IBEF report, the automotive sector is valued at approximately $15 Bn in the top eight cities, of which the after sales market is close to $7 Bn and growing at a healthy pace. Other startups operating in this space include OLX, Quikr, CarDekho, Spinny, etc.
