CarTrade Plans to List on Bourses
New Delhi: Online auto classifieds platform CarTrade, which had earlier this year raised $145 million (.`960 crore) from Temasek Holdings, March Capital and Warburg Pincus, is planning to list on the bourses in the next three years, its founder said.
“We are operationally profitable and are targeting increasing revenue by 2.5 times this year,” said Vinay Sanghi, who is also its chief executive. He didn’t say how much was its revenue last year.
CarTrade claims to sell around 25,000 new cars and 30,000-40,000 pre-owned cars on its platform every month. The company has three streams of revenue: subscription fees from used-car and new-car dealers registered on the platform, from advertisements of automobile companies and fees applied on vehicle auctions conducted on the site.
“There is a strong potential to grow in the used-car business to begin with, as the pre-owned vehicle market is mostly unorganised,” said Abdul Majeed, partner, Price Waterhouse, a network firm of PricewaterhouseCoopers in India. “Many automobile companies have entered the space. The key to be successful is to gain customer confidence. The new car market online is evolving and yet to come of age in India.”
CarTrade, which has partnered with over 10,000 new- and used-car dealers, lists over 225,000 used cars for sale and auctions over 250,000 vehicles to the wholesale market every year. It registers around 35 million unique visitors across its platforms every month.
The company is looking at expanding its product offerings and is in talks with multiple banks to introduce financing options by June for products sold on its platform. “The pre-owned car market, which is now sized at around 4 million units, is growing at the rate of 12-15% … However, auto finance penetration in the used-car market is only about 10%,” said Sanghi. “We believe we can organise this market. There is a lot of potential to grow.”
CarTrade, which acquired CarWale when German media conglomerate Axel Springer exited the company in November 2015, said it has concluded six rounds of funding since inception and does not require fresh resources in the near future. Investors also include Canaan Partners, Epiphany Overseas Ventures and Tiger Global.
CarTrade competes with private equity and venture capital-backed firms like Jaipur-based Cardekho.com (Girnar Software Solutions), Droom Technology and Truebil (Paix Technology).
Co claims to sell 25k new cars and 30k-40k pre-owned cars every month