In one of the most significant developments in the automobile sector, Used car classifieds firm CarTrade has acquired major rival CarWale, which was previously being owned and backed by German media conglomerate Axel Springer.
About CarTrade and CarWale
Axel acquired CarWale in 2010, and this deal, made in cash, will cause the German company to sell its 91% holding. The two companies will continue to operate independently. CarWale operates an excellent database for both used as well as new cars, and it also happens to be a market leader in this segment. This is likely to prove to be a great boost to CarTrade’s services. The latter, set up by Vinay Sanghi and Rajan Mehra in 2010, operates both as a B2B, as well as a B2C platform. The company offers extensive info regarding the conditions of the used cats being sold by it, besides providing details of reviews, certifications and prices. CarWale’s exhaustive database also runs along the same lines, allowing users to zoom in on the available new or used cars in their cities. Users can also contact sellers, save the listed car as an item they are interested in, or get further information about their listings using the “know more” tab. CarWale’s profile has also risen of late, with its raising of $30 million from Warburg Pincus, Tiger Global and Canaan Partners in 2014, followed by the securing of an undisclosed amount from Chip Perry, former CEO of US-based automobile classifieds Auto Trader.
What we know about the amount involved
While the exact acquisition amount has not been made available so far, reports in the press earlier in September indicated that it would be worth Rs. 790 crore($120 million). Insiders have recently claimed that the figure is closer to Rs. 530-590 crore($80-90 million). The combined operation, including almost 2.5 lakh used car listings and 9.000 car dealers is set to be a veritable giant.
With increasing Internet coverage giving an added flavor to ever-rising consumer demand, online listings of used and new cars are likely to post huge gains in the near future. In this light, the acquisition of CarWale by CarTrade is a fresh and exciting development which looks set to catapault the automobile sector to ever greater heights.