CarTrade Eyes IPO, Aims to Raise 2,000 Cr

By siliconindia  |  Tuesday, 04 May 2021, 10:01:29 AM IST

CarTrade Eyes IPO, Aims to Raise Rs.2,000 Cr

The tech majors are lining up to file their initial public offerings, thus, right after the food-tech major Zomato’s 8,250 crore public offer, now, CarTrade, the auto classifieds platform is set to file its draft prospectus, according to the sources close to firm.

“They are ready to file the DRHP. Final touches are being put on the document. It should happen in the next 10-15 days. This will be the first online auto classifieds company to go public in India," says the sources.

They add, “It will be a mix of primary and secondary share sale. Investment banks Citi, Nomura, Axis Capital and Kotak Mahindra Capital are advising CarTrade on the IPO."

Furthermore, it is been stated that CarTrade is intending to raise close to 2,000 crore. CarTrade is backed by American private equity giant Warburg Pincus, Singapore’s state investor Temasek, JPMorgan and March Capital Partners.

The platform enables customers to buy and sell new as well as used cars, and to discover and review offerings by auto companies. The firm runs CarTrade.com, Carwale.com and Bikewale.com that offers services, such as automobile inspection, valuation, certification and other related services through Adroit, and Shriram Automall India Ltd, a platform for pre-owned commercial vehicles, passenger vehicles, construction and industrial equipment, tractors and agricultural equipment, and three- and two-wheelers.

Additionally, CarTrade had procured a 51 percent stake in Shriram Automall in January 2018 for about 157 crore. In 2015, it has also taken over rival CarWale in a move to consolidate the online auto classifieds industry.

The firm’s sources also states, “The pandemic has given a strong push to personal mobility as has been seen by the auto sales numbers in the last couple of quarters. It has also made digital a very prominent channel for buying and selling cars. These trends will provide tailwinds for the company to grow stronger in the coming years."

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