Indian online auto marketplace, CarTrade which is owned and operated by MXC Solutions Pvt Ltd, has closed $145 million in a funding round from Singapore state investor – Temasek Holdings, US-based investment firm – March Capital and existing investor Warburg Pincus. The raised funding will be used to acquire its rival CarWale Group from German media conglomerate Axel Springer, for a deal amount of around $100 million. The new funding will also go towards product expansion by the two companies.
“The funds will be used to further expand our services organically and we are also looking at a few acquisitions in the new and used car spaces,” said Vinay Sanghi, founder & CEO of CarTrade.
The current valuation of CarTrade is still undisclosed but in its last round when the company raised $30 million in October 2014, it was valued at around $100 million.
Post acquisition, CarWale will be focusing on the new car market and CarTrade on used cars as well as the latter also got the two-wheeler business Bikewale as a part of the deal. The combined entity will target $300-400 million in revenue in the next four years.
In September 2015, CarTrade was also in final discussions for acquiring CarWale for an amount of $120 million but no deal happened at that time.
Together CarTrade and CarWale get 32 million visits per month, have around 10,000 new and used car dealers in their network with more than 2.25 lakh used cars listed. CarTrade also has an auctions business, where over 2.5 lakh vehicles are sold to the wholesale market every year.
Other players who are operating in the space include Zoomo, Spinny, Droom and Credr. In 2014, CarDekho, CarTrade’s main rival, acquired ZigWheels from Times Internet. Quikr has also been extending its reach into the market by advertising its vertical platform QuikrCars.