Auto classified portal, CarTrade through its parent MXC Solution Private Limited, has acquired stakes of 51% in a pre-owned vehicles auction platform Shriram Automall India (SAMIL) for Rs 156.37 crore. As part of the transaction, CarTrade will outsource its 100% auction business to SAMIL.
Also, CarTrade’s subsidiary Adroit Inspection- a vehicle inspection and valuation company will become part of SAMIL as the company bought the subsidiary for Rs 13 crore from CarTrade. It’s unclear if this amount is part of that Rs 156 crore transaction.
SAMIL is a subsidiary of Shriram Transport Finance Company (STFC), the lender of pre-owned commercial vehicles. STFC provides bidding platforms, including physical, online classified and negotiated deals, acquisition and disposal of pre-owned commercial vehicles, construction and industrial equipment, tractors and agricultural equipment, passenger vehicles etc.
This deal will help SAMIL to expand its operations in online space. The company said in its statement that with this transaction, the company will look at new segments of vehicle finance, and added that this deal aims at creating offline and online vehicles transaction platform for its customers. SAMIL expects to double its business in the next 3 years.
Sameer Malhotra, Director & CEO, Shriram Automall said that the company is growing 30% year on year basis and is looking to grow multi-fold at over 50% in coming years. “We have around 5 million customers support at Shriram Group; joining hands with CarTrade Exchange will add another
5 million digital customer base, besides their technology expertise.” he added.
Pre-owned vehicle space
Other players in the space include CarDekho, which launched a digital loan platform for used cars and has tied up with lenders such as HDFC Bank, Axis Bank, Tata Capital and Mahindra Finance. There is also QuikrCars which tied-up with automobile sales and service company Carnation Auto to introduce free vehicle inspection services to users.