Car platform Startup CarTrade to Acquire OLX India's Auto Business for Rs 537.43 Crore

By siliconindia  |  Wednesday, 12 July 2023, 08:34 IST

Car platform Startup CarTrade to Acquire OLX India's Auto Business for Rs 537.43 Crore
Mumbai-based used car platform CarTrade is set to acquire the auto sales business of online marketplace OLX India in an all-cash deal valued at Rs 537.43 crore. The acquisition will involve CarTrade obtaining a 100% stake in Sobek Auto India Pvt Ltd, the entity responsible for operating OLX India’s automotive segment, from OLX India.
According to the BSE filing, Sobek Auto reported a turnover of Rs 1,110.4 crore in FY22, a significant increase from Rs 592.3 crore in FY21. As part of the acquisition, Sobek Auto has entered into agreements, including an Intellectual Property License Agreement and a Transitional Support Agreement, enabling the utilization of certain brands and technology.
CarTrade’s venture arm, CarTrade Ventures, was launched in February 2023 with a plan to invest up to Rs 750 crore over the next five to seven years. The investments will be focused on areas such as auto finance, leasing, insurance, servicing, electric vehicles, clean energy, and new-age technologies.
The acquisition aligns with CarTrade’s strategic objectives of pursuing investments that bring synergistic benefits to its existing businesses. Established in 2010, CarTrade offers a platform for users to buy new and used vehicles while providing relevant information. The company operates several brands including CarWale, BikeWale, Adroit Auto, and AutoBiz.
This acquisition positions CarTrade to further expand its market presence and enhance its offerings in the used car segment through the integration of OLX India’s auto sales business.

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