Automobile classifieds portal CarTrade.com has raised $55 million from Singapore-based investment firm Temasek. The funding round also witnessed the participation of a large US family office. The company will use the funds to make acquisitions, expand into new areas like auto finance, and sharpen its services to consumers, dealers and OEMs, the statement added.
Vinay Sanghi, Founder and CEO, CarTrade, said,
The funds raised will be used to drive growth through continued focus on strengthening our dealer and customer services and evaluating potential acquisitions. CarTrade is aggressively looking at the market for used car finance withless then eight percent of used cars sold being financed through an organised financier. To address this opportunity, CarTrade Finance was recently launched with the aim of financing the inventory for car dealers and to consumers who wish to buy used cars.”
Last year, CarTrade had raised Rs 950 crore led by Temasek and March Capital. Following the merger of CarTrade with Carwale in January 2016, CarTrade has been India’s largest auto classifieds platform. The combined company has about 15 million unique customers per month, a leadership in both used and new cars, and partners with approximately 8,000 new and used car dealers. The platform lists more than 200,000 used cars for sale and auctions over 200,000 vehicles to the wholesale market every year.
According to an IBEF report, the Indian auto industry, one of the largest in the world, accounts for 7.1% of the country’s GDP. The automotive sector is valued at approximately $15 Bn in the top eight cities, of which the after sales market is close to $7 Bn and growing at a healthy pace. Other startups operating in this space are new startups include OLX, Quikr, Cardekho, Spinny, etc.