MXC Solutions India owned online auto classifieds site CarTrade has raised Rs 185 crore investment in a round led by a Warburg Pincus affiliate with participation from existing investors Canaan Partners and Tiger Global.
The company plans to use the investment raised to improve CarTrade’s existing offerings for consumers & dealers and expand its offerings across online and mobile platforms. It also plans to use this investment to strengthen its marketing initiatives.
Note that MXC Solutions India that also operates the B2B online vehicle auction site CarTradeExchange (previously MotorExchange), had acquired CarTrade (then CarTrade India) for an undisclosed amount in August 2009.
Following this, the company had raised three rounds of investments as MotorExchange – a $13 million round from Tiger Global & Canaan Partners in August 2011, a $5 million round from Epiphany Ventures & Canaan Partners in January 2011 and an undisclosed amount of Series A investment from Canaan Partners in December 2009. MXC Solutions India is promoted by Vinay Sanghi who was previously the CEO of Mahindra First Choice.
CarTrade is an auto classifieds platform that allows consumers to buy or sell used cars. It claims to currently offer more than 100,000 listings of used cars on its platform. It also has a used car pricing guide and and a certification program wherein the car’s present condition is jointly inspected by a CarTrade engineer & the selling dealer and a detailed report is included as part of the listing.
For new car buyers, it enables them to find new cars based on brand, budget and body type and provides information like reviews, on-road prices, car comparisons and latest news on these cars. It also has a car recommendation tool which provides suggestions to users based on budget, fuel & body type and other factors like mileage, performance and resale value among others.
CarTrade competes with Sequoia Capital-backed CarDekho which acquired Ibibo’s automobile site Gaadi.com last month. Interestingly, Accentium Web* which had first launched Gaadi.com before selling it off to Ibibo in Feb 2011, had launched another automobile website 99Cars in August this year.
Other players in this segment include Axel Springer’s CarWale, Times Internet’s ZigWheels and India.com’s Oncars.in. It’s worth noting that Warburg Pincus & Tiger Global has also backed horizontal classifieds site Quikr which somewhat competes with CarTrade, since it features used car listings.
*Accentium Web has been founded by Vivek Pahwa, who is MediaNama Editor Nikhil Pahwa’s cousin.