Online automobile classifieds platform CarTrade has raised $55 million (around Rs 360 crore) led by Temasek, an investment company based in Singapore, alongside a large US family office. The company said that the funds would be used to support CarTrade's growth plans through acquisitions.
The acquistions could be smaller companies in the used and new car ecosystem, technology or product companies that add value to CarTrade's current offerings, as well as on its new initiatives like car financing, informed Vinay Sanghi, founder and chief executive officer, CarTrade.
Following its merger with Carwale in January 2016, CarTrade has become India's largest auto classifieds platform, with about 15 million unique customers a month, leadership in both used and new cars, and a base of about 8,000 new and used car dealer partners. The platform lists more than 200,000 used cars for sale and auctions over 200,000 vehicles to the wholesale market every year.
Sanghi said, "CarTrade is on a rapid growth trajectory. The funds raised will be used to drive growth through continued focus on strengthening our dealer and customer services and evaluating potential acquisitions. CarTrade is aggressively looking at the market for used car finance with less then eight per cent of used cars sold being financed through an organised financier."
To address this opportunity CarTrade Finance was recently launched with the aim of financing the inventory for car dealers and to consumers who wish to buy used cars.
Existing investors in CarTrade include Warburg Pincus, Temasek, JP Morgan and March Capital.
CarTrade has so far raised around $230 million in multiple rounds. In January 2016, the company had raised around $145 million from Temasek, March Capital and JP Morgan, Sanghi informed. This was used to acquire CarWale from German media conglomerate Axel Springer for about Rs 590 crore.
India's automotive sector turnover is likely to touch $300 billion by 2026, growing at 15 per cent per annum.