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Mumbai-based online auto classifieds platform, CarTrade, has acquired city-based CarWale for an undisclosed amount.
The financial details of the deal has been left undisclosed, however, according to ET, CarTrade has bought CarWale for about $90 Mn (INR 590 Cr).
According to the deal terms:
- German media conglomerate, Axel Springer, which primarily had acquired CarWale along with India Today group, is supposed to sell its 91% holding.
- CarWale’s founder Mohit Dubey will join the combined entity as a co-founder and director with an equity stake in the CarTrade.
- Also, two-wheeler retail division of CarWale, Bikewale, will also move to CarTrade.
Vinay Sanghi, founder of CarTrade said, “Both platforms will operate independently. CarWale will focus on being the new car brand, while CarTrade will be the used-car brand.”
Founded in 2010 by Vinay Sanghi, CarTrade.com, provides buyers and sellers a structured platform for buying and selling new and used vehicles. The company raised an undisclosed amount from Chip Perry in February this year. It counts Warburg Pincus, Tiger Global Management and JP Morgan as its existing backers, and was valued around $100 Mn when it last raised funding in October 2014.
With this acquisition, the company expects to earn revenue of up to $400 Mn in the next four years. The combined entity of company will now have about 2,000 employees with around 9,000 car dealers and 2.25 lakh used cars listed on the platform.
Ralph Buchi, president for international business at Axel Springer explained, “Through the merger with Car-Trade, we are facilitating reasonable market consolidation, and at the same time, are multiplying our invested capital in a highly competitive market.”
With the advent of various online portals for used vehicles customary portals like Olx and Quikr have become a passé.
The annual used-car demand in the Indian market is reported to be around 1.4 Mn cars with players Mahindrafirstchoice, Carnation.com, Zigwheels, Droom and others.
Just two months back, CarDekho acquired Zigwheels, for an undisclosed amount. Also, in April this year, another auto portal, CarDekho.com acquired BuyingIQ.com.
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