Mumbai based online auto classifieds startup CarTrade.com has raised over INR 185 Cr. in funding led by an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, with its existing investors Canaan Partners and Tiger Global also participating in it.
The raised funds will be used to diversify and strengthen CarTrade’s offerings for consumers and dealers.
Launched back in 2009, for used car buyers, CarTrade.com offers a deep selection of over 100,000 listings, price information and car certification, which makes the buying process easy and reliable. For new car buyers, there are a host of features such as reviews, on-road prices, car comparisons and latest news which it offers.
“We are extremely happy to have Warburg Pincus on board as a partner. The funds raised shall be employed to further expand our services to help us offer our consumers and dealers a seamless online experience. We also plan to focus significantly on the mobile space and provide products and services, which will be best in class and in many cases the first of its kind,” commented Vinay Sanghi, Founder and Chief Executive Officer, CarTrade.com
“We see tremendous potential in the Indian automobile market. CarTrade is one of the most innovative platforms in the online auto sector, and has shown strong growth momentum in the last couple of years. Warburg Pincus is excited about the opportunity to partner with a very talented team to further build on its position and to accelerate its growth plans,” commented Nitin Nayar, Managing Director, Warburg Pincus India Private Limited.
CarTrade is owned and operated by MXC Solutions Pvt Ltd which in 2011 had raised $13 Mn in its third round of funding led by venture capital firm Tiger Global Management, with participation from existing investor Canaan Partners for it’s another vertical called CarTradeExchange.com which offers an online vehicle auction platform.
The company is promoted by Sanghi, a former CEO of Mahindra First Choice. Rajan Mehra, MD at Nirvana Venture Advisors and former country head of eBay, India is also a founder-director in CarTrade. Its investors include Canaan Partners, Epiphany Overseas Ventures and Tiger Global, apart from Warburg Pincus.
This is second investment for Warburg Pincus in consumer internet business, earlier it had invested in Quikr.