In a inventory alternate submitting on Monday, CarTrade stated that it’ll purchase 100% stake in Sobek Auto India Pvt Ltd, the entity which homes OLX India’s automotive business for a money consideration. Even although it’s worthwhile, the acquisition might considerably influence CarTrade’s money cushion.
As of March 31, 2023, the corporate — which had raised funds from buyers akin to Temasek Holdings and Tiger Global previous to its public providing in 2021 — had Rs 1,185 crore money and money equivalents on its books on a standalone foundation.
OLX is the categorised unit of Dutch-listed funding agency Prosus. Earlier this yr, Prosus had stated that it was divesting OLX’s automotive business globally on account of weak macroeconomic situations and rising challenges for the phase. Reportedly, Prosus had earlier engaged in discussions with a number of different gamers within the used-car phase, together with Cars24 and Spinny, previous to closing the cope with CarTrade.
“The acquisition is in furtherance of the strategic objectives of the company to undertake investments which provide synergistic benefits to the existing businesses of the CarTrade Tech,” the corporate stated within the inventory alternate submitting.
As per the submitting, Sobek Auto reported a turnover of Rs 1,110.4 crore for FY22, up from Rs 592.3 crore in FY21. “As part of the acquisition of Sobek, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology,” it added.
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In its earnings assertion launched final month, Prosus had stated, “Ecommerce consolidated trading losses (or operating losses) from continuing operations of $617 million reflected incremental investment in the group’s ecommerce growth extensions as we continued to invest in high-conviction growth areas. Market conditions deteriorated significantly for this business in the second half of the year and the group is completing an exit of OLX Autos”. Prosus had additionally stated final month that it was on the lookout for consumers for OLX classifieds and it’s used-car itemizing business. OLX not too long ago shut down operations in some South and Central American international locations, whereas additionally shedding 800 individuals.
CarTrade Tech’s shares ended buying and selling 1.7% decrease from its earlier shut at Rs 486.85 on the BSE on Monday. For the year-ended March 31, 2023, CarTrade Tech reported working revenues of Rs 363.73 crore, and a internet revenue of Rs 40.43 crore for FY23.
Source: economictimes.indiatimes.com