India’s leading online auto classifieds portal, CarTrade, has raised Rs 950 crores led by Temasek, an investment company based in Singapore, and March Capital a leading US based venture investment firm, with participation from existing investor Warburg Pincus, a leading international private equity firm focused on growth investing.
“The funds will 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.
“We are extremely happy to have Temasek and March Capital on board as partners together with existing investor, Warburg Pincus. This investment is a validation of CarTrade’s business model and growth plans in the Indian online auto space. The funds raised shall be used to further expand our services organically and through acquisitions. We will continue to focus on products, services and strengthening our world class technology capabilities and platforms, to deliver a seamless online experience for auto enthusiasts across the country.” said Vinay Sanghi, Founder and CEO, CarTrade.
Mohit Dubey, CEO, CarWale added, “These are exciting times for us as the e-commerce sector is at a broad confluence of multiple macro trends. We are very excited about the opportunities presented by sector in India and are well positioned to leverage these opportunities. At this stage of growth we welcome Temasek and March Capital and this new financing will provide CarTrade with a strong foundation for future growth.”
Sumant Mandal, Managing Director, March Capital said, “At March Capital we believe that the greatest companies of tomorrow are being built now. CarTrade has developed a unique and a world class platform for transacting in new and used vehicles. A leader in its segment, it has steadily expanded its offerings across India and today has an extremely strong network dealer partners with a rapidly growing user base. We continue to be impressed by the team’s dynamism, passion, energy and vision and look forward to working closely with the team to support the company in achieving its growth ambitions.”
CarTrade following its recent combination with Carwale is India’s largest auto classifieds platform. They have over 32 million visits per month and work with approximately 10,000 new and used car dealer partners. The platforms list more than 225,000 used cars for sale and auctions over 250,000 vehicles to the wholesale market every year. CarTrade and CarWale jointly contribute to a majority of all online sales for car dealers and car manufacturers.
The raised capital will be used to fund the cash acquisition of rival CarWale from German media conglomerate Axel Springer – the deal was fixed at around $100 Mn, and for further product expansion by the two companies as reported by ET.