The online auto classifieds CarTrade has acquired its rival platform CarWale from Axel Springer, the leading European digital publisher. The amount of acquisition is still not revealed by the former. This appears to be the largest consolidation that has happened in this segment, as per the industry experts. CarTrade is owned as well as operated by a Mumbai-based company MXC Solutions India Pvt. Ltd. Though the size of the deal is not revealed officially, it is claimed to be Rs 3.2 crore, but an official confirmation is awaited.
CarTrade has its focus on the used cars, whereas CarWale’s main strength is in the new vehicles. The merged business is a leading player in both the segments, new and used cars. Both the companies together have more than 3.2 crore user visits in a month and they work with over 9,000 used and new car dealers. These dealers connect the car makers and the car buyers, claimed an official CarTrade statement. Both the platforms jointly list over 2.25 lakh used cars that are for sale.
Today, the internet is the largest source of the consumers for the car dealers. Both the car classified platforms CarTrade as well as CarWale contribute jointly to a majority of the online sales to the car manufacturers and car dealers.
Vinay Sanghi, the Chief Executive and Founder of CarTrade stated that they firmly believe that the acquisition of the platform CarWale by CarTrade is a worthy investment. He says that they believe that the combination of both the car classified platforms will strengthen their leadership in the space of used and new cars simultaneously. He claimed that they can direct their joint resources in order to develop better products that will enhance the user experience.
The investors of CarTrade are March Capital, Warburg Pincus, Epiphany Ventures and JP Morgan.
