Temasek leads $145m round for India's CarTrade
Singapore state-backed investment group Temasek Holdings and US-based March Capital have led a INR9.5 billion ($145 million) funding round for Indian online used car dealer CarTrade.
Existing investor Warburg Pincus also participated in the round, according to a release. The funding will be used to diversify the products offered by CarTrade and its recently acquired rival CarWale, along with expanding the company's services organically and through acquisitions.
CarTrade and CarWale between them claim to be India's largest online auto listings platform, with over 32 million visits per month and about 10,000 new and used car dealers selling through the site. The company also participates in the two-wheeler retail market through BikeWale, CarWale's two-wheeler subsidiary.
CarTrade acquired CarWale in November, paying a reported INR5.3 billion for a 91% stake held by German media conglomerate Axel Springer. Both companies have continued to operate separately since the deal, which was officially described as a merger rather than an acquisition. CarTrade handles the used vehicle market, while CarWale deals with new cars.
"This investment is a validation of CarTrade's business model and growth plans in the Indian online auto space," said CarTrade founder and CEO Vinay Sanghi. "We will continue to focus on products, services and strengthening our world class technology capabilities and platforms, to deliver a seamless online experience for auto enthusiasts across the country."
According to AVCJ Research, CarTrade has raised several funding rounds totaling nearly $200 million since its founding in 2009, including this round. Its most recent funding was a INR1.85 billion commitment led by Warburg Pincus in 2014. Other investors include Tiger Global, Canaan Partners and Epiphany Ventures.
Several of CarTrade's competitors have raised VC funding. Car trading platform and information portal CarDekho has received almost $65 million across two rounds of funding from investors including Hillhouse Capital and Sequoia Capital, while used car trading platform Mahindra First Choice Wheels is backed by Valiant Capital Management.
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