CarTrade Tech says it is acquiring entire India biz of classifieds platform OLX

Mumbai-based on-line used automobiles market CarTrade Tech on Wednesday stated it has acquired all the India business of classifieds platform OLX for Rs 537.43 crore.

CarTrade Tech had in a inventory trade submitting on Monday stated it was buying 100% of Sobek Auto India Pvt Ltd, the entity that homes OLX India’s auto business.

In a brand new assertion, it stated Sobek additionally consists of the OLX classifieds platform. It added that the acquisition is anticipated to be accomplished inside the subsequent few weeks.

“In India, OLX is one of the strongest brands in the online classified space with more than 35 million average monthly unique visitors, approximately 30,000 dealers, and 30+ million listings in a year,” Vinay Sanghi, chairman and founding father of CarTrade Tech, stated in an announcement. “We are really excited to acquire such a strong business built by a talented team and with cutting-edge technology.”

As of March 31, 2023, CarTrade Tech – which had raised funds from traders resembling 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 classifieds unit of Dutch-listed funding agency Prosus. Earlier this yr, Prosus had stated it was divesting OLX’s automotive business globally on account of weak macroeconomic situations and rising challenges for the section.

Reportedly, Prosus had engaged in discussions with a number of different gamers within the used automobile section, together with Cars24 and Spinny, previous to closing the take care of CarTrade.Through its used-car gross sales business, OLX Autos enabled the sale and buy of fifty,000 automobiles final yr, CarTrade stated in its assertion.

Prosus had additionally stated final month it was in search of patrons for OLX classifieds and its used-car itemizing business. OLX just lately shut down operations in some South and Central American international locations, whereas additionally shedding 800 individuals.

On Wednesday, shares of CarTrade Tech ended buying and selling 3.3% decrease from earlier shut at Rs 538.15 on the BSE.

The firm had earlier stated in a inventory trade submitting on Monday that Pvt Ltd, the entity that homes OLX India’s auto business, however added in a brand new assertion that Sobek additionally consists of the OLX classifieds platform.

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