Automobile classifieds is one online industry where consolidation is happening faster than any other sector. As Cardekho continues its acquire and conquer trend, its rival CarTrade is also onto the same path. Earlier in September iamwire had reported that CarTrade is acquiring CarWale (and its subsidiaries) for $120 million, the deal has now been closed however the amount hasn’t been confirmed yet.
According to a coverage by ET, German media conglomerate Axel Springer will sell its 91% stake in an all cash deal amounting between $80-90 million. The platforms will continue to operate separately, while CarWale’s Founder Mohit Dubey will get equity and directorship in CarTrade.
Founded in 2005, Carwale counts Seedfund and Sierra Ventures as its initial investors. The company was taken over by Axel Springer in 2010.
CarTrade’s biggest competition is CarDekho, which acquired Times Internet owned auto portal Zigwheels a fortnight ago. And in September 2014, it had acquired Gaadi.com from Ibibo Group. The company had also acquired price comparison portal BuyingIQ earlier this year.
These classified companies offer price comparisons, reviews and content around automobiles. Autoportal, Quikr Cars are two other players in this space. Additionally, recently Shopclues Founder and ex-chief Sandeep Agarwal launched an automobile marketplace called Droom. Should facilitating actual transactions be the next step for these online classifieds companies? Or is sustenance through advertising revenue enough?Category Business News