Used car platform CarTrade to acquire OLX India’s auto business for Rs 537.43 Cr
CarTrade will acquire a 100% stake in Sobek Auto India Pvt Ltd, the entity that operates OLX India’s automotive business in an all-cash deal.
Mumbai-based used cars platform is set to acquire online marketplace OLX India's auto sales business in an all-cash deal worth Rs 537.43 crore.
According to a BSE filing, CarTrade will acquire a 100% stake in Sobek Auto India Private Ltd, the entity that operates OLX India’s auto sales segment, from OLX India.
As per the filing, 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," said the filing.
In February this year, CarTrade launched its venture arm, CarTrade Ventures, to invest up to Rs 750 crore over five to seven years in areas such as auto finance, leasing, insurance, servicing, car ownership, electric vehicles, clean energy, and new-age technologies.
"The acquisition is in furtherance of the strategic objectives of the company to undertake investments which provide synergistic benefits to the existing businesses of CarTrade Tech," the company stated in its filing.
Founded in 2010, the CarTrade platform allows users to own new and used vehicles, as well as discover information related to them. The company runs brands such as CarWale, BikeWale, Adroit Auto, and AutoBiz.
Edited by Megha Reddy