CarTrade in Final Talks to Acquire CarWale for $120M

Indian online auto marketplace, CarTrade is in final talks to acquire its rival CarWale Group for about $120 million. The deal includes acquisition of CarWale and BikeWale portals.

“The deal is almost final; we are expecting the formal announcement to come in a few weeks,” a source close to the deal told ET. To finance the deal, CarTrade has made a consortium of four investors including JP Morgan, Goldman Sachs and Tiger Global. Ratan Tata backed had also been in discussions for acquiring CarWale for an amount of $100 million but the talks went futile.

A few days back, CarDekho was also in news for the acquisition of Times Internet owned auto portal Zigwheels. However, the deal has not yet been officially confirmed by the both firms. In September 2014, it had acquired IbiboGroup’s, for an undisclosed amount.

CarWale is backed by Axel Springer, which owns the majority stake, while its Founder Mohit Dubey owns less than 10%, and after the acquisition, he will have 2% stake in the joint entity. The company claims to have registered 21.08 million visits to its portals CarWale and BikeWale in August, while CarWale alone clocked 16.85 million visits.

In February this year, CarTrade had raised an undisclosed amount from former AutoTrader CEO Chip Perry and in October 2014, the company had closed $30.2 million funding round led by private equity firm Warburg Pincus.