With ₹ 366 cr in Boot, CarTrade Zips Through Round-G Lap
On Growth Path
Supraja Srinivasan & Biswarup Gooptu
Mumbai | New Delhi: Online automobile classifieds company CarTrade has raised $55 million (about .₹ 366 crore) in a fresh round of funding that has been co-led by existing backer Temasek and a US-based family office.
Vinay Sanghi, founder of CarTrade, confirmed to ET the closure of the Series-G round, but declined to name the new investor, citing confidentiality clauses signed between the parties.
Apart from Temasek, the Singapore government’s investment company, CarTrade’s other investors — the list includes global private equity giant Warburg Pincus and US-based investment firm March Capital — did not participate in the latest round. “They (Warburg Pincus and March Capital) wanted to participate, but given the (small) size of the round, we already had takers,” Sanghi told ET. Till date, the company has raised about $230 million across multiple rounds. The development also comes a little over a year after the Mumbaibased company closed one of the largest funding deals in the country’s online classifieds space, securing $145 million in equity financing from Temasek and March Capital in January 2016.
Proceeds from that round, which was first reported by ET, were almost completely utilised to acqui-
acquisition of CarWale, combined entity works with 8,000 newand used-car dealers
re smaller rival CarWale from German media conglomerate Axel Springer for about .₹ 590 crore. Funding from the latest round, Sanghi said, would be used for acquisitions and on new initiatives such as auto financing.
“It could be anything — ventures offering unique products or technologies — that can add to the new and used car ecosystem, including car insurance, car servicing, or even in newer technologies, such as the Internet of Things,” Sanghi said, adding that the company was open to making all-cash offers once again.
CarTrade launched auto finance as a service in October, in partnership with banks and non-banking finance companies (NBFC), to document and evaluate used cars to enable loans.
“Auto finance will form 25% of our business by fiscal 2018. This will have a huge ramp up on our finances,” Sanghi said. While the country’s online auto classifieds space has witnessed consolidation over the past 24 months, it has also seen the entry of new ventures operating in the segment, and these entrants have raised significant funding from risk capital.
Droom has, till date, raised about $45 million in four rounds from a raft of investors, including VC firms Lightbox and Beenext, ecommerce operator Beenos, Japan’s Digital Garage, Hong Kong-based investment company Integrated Asset Management, and Axis Capital.
The company is also in talks with potential investors, with the twoyear-old venture targeting $30-50 million in its next round of funding, expected to close over the next few months.