MXC Solutions India Pvt. Ltd, the operator of CarTrade.com and Carwale.com websites, has agreed to buy Shriram Group’s unit that sells used trucks, buses and other vehicles for Rs 156.4 crore ($24.5 million).
Shriram Transport Finance Company Ltd said in a stock-exchange filing it will sell 16.6 million shares of wholly owned unit Shriram Automall India Ltd to MXC Solutions at Rs 94.03 apiece. The transaction is likely to be completed on or before 23 April, it said.
Shriram Automall had revenue of Rs 83 crore for 2016-17 and a net worth of Rs 60 crore.
For Mumbai-based CarTrade, an online automobile classifieds platform, this is its third acquisition and will give it a foothold in the truck and bus business.
Backed by investors such as Temasek Holdings, Warburg Pincus and Tiger Global, CarTrade has cumulatively raised more than $240 million so far. When the company raised $55 million from Temasek Holdings in February 2017, it said that it would use the money for acquisitions.
Shriram Automall provides a platform for selling trucks, buses and other commercial vehicles. It also provides for the refurbishment of pre-owned vehicles apart from running online truck bazaars and other related services.
CarTrade has several competitors in the online space while the offline space has seen the auto manufacturing companies entering the business. Its nearest competitor is Jaipur-based CarDekho. In September 2015 CarDekho acquired Times Internet Ltd’s auto portal Zigwheels for an undisclosed amount. In September 2014, CarDekho had taken over Gaadi.com.
CarTrade was founded in 2009 by Vinay Sanghi, former chief executive of Mahindra First Choice. Rajan Mehra, managing director at Nirvana Venture Advisors and former country head of eBay India, is also founder-director at the company.
Other funded companies in the space include Droom, Spinny and Truebil. CarTrade also competes with classified portals such as Quikr and OLX.