India's PE-backed CarTrade buys rival CarWale
CarTrade, an Indian online used car portal backed by Warburg Pincus and Tiger Global Management, has bought a majority stake in online automotive sales platform CarWale from its owner, German media conglomerate Axel Springer.
Axel Springer holds a 91% stake in CarWale, and has been an investor in the company since it and India Today acquired a majority stake in 2010. The German company has since bought out India Today's stake. CarTrade will pay cash for the entire stake; closing is expected to take place over the coming weeks, according to a release.
Financial terms of the purchase have not been disclosed, but The Economic Times reported that CarTrade will pay INR5.3-5.9 billion ($80-90 million). BikeWale, CarWale's two-wheeler retail division, will also join CarTrade as part of the deal.
The companies are describing the transaction as a merger rather than an acquisition. CarTrade and CarWale will continue to operate independently, with CarTrade handling the pre-owned vehicle business and CarWale handling sales of new vehicles. Following the merger the combined entity will have about 2,000 employees, with 9,000 dealers and 225,000 used car listings on the two platforms.
CarTrade was founded in 2009 and has raised several rounds of funding, most recently in October 2014, when Warburg Pincus led existing investors Canaan Partners and Tiger Global in an INR1.85 billion round.
The company is one of several operating in India's online used car sales space; others include Mahindra First Choice Wheels, which is backed by Valiant Capital Management, and Zoomo, whose investors include SAIF Partners.
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