CarTrade, the Mumbai-based auto classifieds website, has acquired its peer CarWale for ~ $90 million (Rs 590 crore), reports ET. The deal was made primarily in cash. Axel Springer, which owned 91% in Carwale has sold its stake 5 years after acquiring it. We’ve written to CarWale for more information and will update the story if we hear from the company.
Mohit Dubey, founder of CarWale, will join the combined entity as co-founder and director, and will have an equity stake in CarTrade. Carwale will also earn advertising revenues. The ET report adds that both the platforms will operate independently where Carwale will focus on new cars and CarTrade on used car brands. Carwale’s bike retail division Bikewale till move to CarTrade as a part of this deal. Together, the entity will have 2,000 employees, 9,000 car dealers and 225,000 used cars on the platform.
Earlier this month, BusinessWireIndia reported that the Carwale group saw 22.4 million group visits in October 2015, its highest monthly traffic so far, and a 30% growth from October 2014. Carwale saw 18.4 million visits, while Bikewale saw 3.9 million visits.
In February, CarTrade raised an undisclosed investment from Chip Perry, the former founding chief executive of Auto Trader, an online auto classifieds company in the US. In October 2014, it had raised Rs 185 crore from Warburg Pincus, Tiger Global and Canaan Partners. At that time, it claimed to have over 100,000 listings of used cars on its platform.
In 2010, Axel Springer, along with India Today, had acquired a majority stake of 70.4% in Carwale, while in 2009, MotorExchange acquired the business of B2C auto portal CarTradeIndia for an undisclosed amount.
– In September, car portal CarDekho acquired the Times Internet* owned auto portal Zigwheels for an undisclosed amount to help CarDekho to enhance its content. Zigwheels would operate as an independent entity under the group. Zigwheels saw an estimated 8 million monthly visits, while CarDekho saw around 25 million monthly visits, including traffic to Gaadi.com, which CarDekho acquired in September last year.
– In August, Quikr launched QuikrCars where users could search for and buy new and used cars, bikes and other vehicles like trucks by budget. The vertical displayed listings of sellers, popular cars near you, reviews and videos.
– In the same month, Prashan Agarwal, the former co-founder of online real estate services portal PropTiger, launched a peer-to-peer transaction marketplace called 19miles for buying and selling used cars. The startup also secured a Rs 2.5 crore funding from an unnamed angel investor.
–There’s also India.com’s Oncars.in
Image Credit: Shashidhar KJ