CarTrade, the popular automobile classifieds portal, has found a buyer for its long-awaited acquisition: OLX India’s auto business. The deal, valued at Rs 537 crore, was announced through a stock exchange disclosure by CarTrade.
According to the agreement, CarTrade Tech Limited has entered into a share purchase agreement with Sobek Auto India Private Limited (Sobek) and its parent company, OLX India B.V. The acquisition of Sobek will be a cash transaction worth Rs 537.43 crore, which will be paid upon the completion of the acquisition.
The entire process is expected to be completed within 30 days, and it will be a cash-only deal. CarTrade will acquire the entire 100% stake of Sobek from OLX India. Previously, on June 30, Sobek had acquired the classifieds internet business from OLX India.
In March of this year, OLX made the decision to exit the OLX Autos’ business in multiple countries. While the company explored consolidation options with other firms in the industry, it ultimately settled on CarTrade. As part of the process, OLX recently terminated over 800 staff members worldwide, including a significant number in India.
This acquisition is strategically significant for CarTrade, which has faced challenges since its public debut. The company had initially listed on the NSE at nearly Rs 1,600 per share in August 2021. Currently, its shares are trading at around Rs 486 per share, with a market capitalization of Rs 2,280 crore or $278 million.
CarTrade stated that this acquisition aligns with their strategic goals of making investments that provide synergistic advantages to their existing businesses. Although specific details about Sobek’s FY23 performance are not available, it achieved an impressive 87.5% growth in gross revenue (GMV) during FY22. The revenue increased from Rs 592.3 crore in FY21 to Rs 1,110.4 crore.
The completion of this acquisition marks a significant milestone for both CarTrade and OLX India’s auto business. The consolidation of their resources and expertise is expected to further strengthen CarTrade’s position in the market and drive growth in the coming years.
