Source Interlink Media, a US based integrated media, publishing, merchandising and logistics company, has acquired a majority interest in Carazoo India, a subsidiary of Logix Microsystems Ltd Internet Solutions LLC, which is in turn a subsidiary of Logix Americas Inc, a step down subsidiary of BSE listed Indian company Logix Microsystems. The exact value of the transaction has not been disclosed. Through the acquisition, Source Interlink, which owns media properties focusing on niche segments including 75 publications, 100 Web sites, 800 branded products, 50+ events, and TV and radio programs, intends to enter the Indian market.
The company aims to leverage its brands and expertise in the international markets, partnering with Logix. In an interview with Folio, Chris Argentieri, President, Source Interlink Media said that Carazoo will be integrated within Source at the appropriate level, and hinted at the development of mobile properties. He also said that Source will focus on the development of its in-market auto properties in India, across different media platforms, which means that the company could start more websites or magazines in the market.
Besides running Carazoo.com, an automative focused B2C website for enthusiasts and buyers, Carazoo also offers dealer management software, website development and marketing services to a variety of automotive and motorcycle dealerships in India. Carazoo.com is an interactive portal facilitating the purchase and sale of Cars in India, and features reviews, blogs, listings, a virtual showroom, car loans and comparison tools, among others. The site claims to attract 500,000 unique visitors per month.
In India, Carazoo competes with AutoIndia, Carwale.com(Axel Springer has a 52.1% stake, while the India Today group has an 18.3% stake), Cartradeindia, CarSalesIndia, DriveInside, Ibibo owned Gaadi, IndiaAutomobile (Consim/Bharatmatrimony Group), Indimoto, among others.
Interestingly, Logix also owns IzmoCars USA, which offers solutions for the US Automotive market focusing on rich media online sales solutions. IzmoCars also powers Yahoo! Autos and AOL Autos, in addition to powering OEM sites of clients such as General Motors, Ford and Mitsubishi, and dealers like Brian Harris Direct, East Bay BMW, Handrick, among others.