Online auto portal CarTrade acquires CarWale
The latest automotive classifieds company to be bought is online car retailing portal CarWale.com. CarWale.com has been acquired by CarTrade.com from previous owners Automotive Exchange Pvt. Ltd. Though news of the takeover surfaced quite a while back, this is the first time that the company has released an official statement on the same. CarTrade.com is operated and owned by MXC Solutions India Pvt. Ltd.
Unfortunately, financial details of the deal were not disclosed and the Mumbai based company is buying the majority stake in CarWale.com from European digital publisher that goes by the name Axel Springer SE.
Vinay Sanghi, Co-Founder of CarTrade said that the takeover will help the two companies combine and further strengthen their leadership in the used and new car business. The two companies will now be joining resources in order to make their business grow even further and improve user experience. According to a recent report on The Economic Times, the deal is reportedly worth somewhere around Rs. 590 crores.
This will help CarTrade enter the new car space as they currently are only present in the used car domain. Now that the two companies are under the same brand name, both now have close to 9000 new and used car dealers. At present, more than 2,25,000 used cars have been listed for sale.
Co-Founder of CarWale, Mohit Dubey said that the merger will help both companies deliver a more comprehensive car buying experience in both the new and used car segments as both the companies have been leaders in their own respective fields.
Investment wise, CarTrade raised Rs. 180 crores last year from Warburg Pincus, Tiger Global and Canaan Partners. Fresh new investments will continue to pour into the industry as the used car business has witnessed an immense growth in India over the past few years.