CarTrade intimated the bourses that firm Goldman Sachs Asset Management BV has increased its stakes in the startup to 5.15%
It now holds 2.4 Mn shares in the company, up 4% from the erstwhile 2.3 Mn or 4.93% stake in the company
The startup's stocks surged by 10% to INR 934 during the intra-day trade on the BSE on May 8
Days after reporting profits in the March quarter (Q4) of financial year 2023-24 (FY24), cartrade
got another boost in terms from one of its key investors as Goldman Sachs Asset Management added to its holding in the company.
In an exchange filing on behalf of CarTrade, Goldman Sachs Asset Management BV informed the bourses that it has increased its stake in the startup to 5.15%, becoming a substantial shareholder.
The stake acquisition coincides with a rally in the shares of the online classifieds and auto auction platform. The stock price has zoomed over 30% this week alone and is close to the company’s 52-week high price.
The stock surged by nearly 10% to INR 934 during the intra-day trade on the BSE on May 8 after touching INR 896.50. It ended the day at INR 929.40 for a 9.48% gain on the opening price. Consequently, the platform’s market cap has also zoomed 23% to INR 4,357 Cr.
The improvement in its performances on the bourses can be attributed to it reporting a 43% jump in its profit after tax (PAT) to INR 25 Cr in Q4, against the INR 23.5 Cr loss it posted in the previous quarter.
Cartrade’s operating revenue also surged 51.5% to INR 145.3 Cr in the reported quarter from INR 95.9 Cr in Q4 FY23.
After the acquisition of more shares, Goldman Sachs holds 2.4 Mn shares in the company, up 4% from the erstwhile 2.3 Mn or 4.93% stake in the company on May 3. The firm bought the shares via open market trading.
It is pertinent to note that the Vinay Sanghi-led company was profitable in Q2 FY24, but slipped into losses due to slowdown in the OLX classifieds business. It had acquired Sobek Auto India, comprising OLX Autos C2B business and OLX classifieds business, for INR 535.54 Cr back in August 2023.
However, in October, the company shut down OLX’s auto transaction business, amid unit economics challenges. Consequently, it slipped into the red in Q3 FY24 with a net loss of INR 23.5 Cr.
However, it regained financial stability across its verticals in Q4. While the Classifieds segment contributed INR 43.3 Cr, remarketing business raked in INR 52.8 Cr in the quarter. Further, revenue from its consumer business increased 15% YoY to INR 49.1 Cr in the reported quarter.
