Mumbai-based auto classifieds portal CarTrade has raised a $55 million in a new round of funding led by Singapore-based investment firm Temasek Holdings. The company, however, did not disclose names of other investors who took part in the new round. It plans to use the fresh funding for acquisitions, expansion into new segments like auto finance and to enhance overall service provided to consumers, dealers, and OEMs.
The company had previously raised $145 million from Temasek Holdings, March Capital, and existing investor Warburg Pincus in January last year for expansion of its services. At that time, the CarTrade said that it will use the funds for the acquisition of CarWale, which was announced in November 2015. Both platforms continue to operate independently wherein CarWale focuses on new cars and CarTrade on used car buying and selling. CarWale’s bike retail division Bikewale was moved to CarTrade as a part of the deal.
The company had previously raised an undisclosed investment from Chip Perry, the ex-CEO of Auto Trader, and Rs 185 crore in October 2014 from Warburg Pincus, Tiger Global, and Canaan Partners. Currently, the combined entity of CarWale and CarTrade claims to have over 15 million unique users with more than 8,000 new and used car dealers on the platform. Apart from this CarTrade offers vehicle reviews, on-road prices, car comparison features, and news content from the automobile industry.
CarTrade competes with services like QuickrCars which offers user cars and bikes classifieds, reviews and relevant content. Similar players include GrinarSoft owned CarDekho, which acquired the Times Internet auto portal Zigwheels in 2015, and Bangalore-based GoZoomo which raised $5 million from SAIF partners in July 2015. GoZoomo, however, shut down its operations in August last year citing unsustainable unit economics.