CarTrade Tech to acquire OLX India's auto business for ₹537 cr

Context:

Mumbai- based used car platform Car Trade Tech will acquire online marketplace OLX India’s auto sales business for Rs.537 cr.

On 10^th July in a stock exchange filing, CarTrade Tech announced it will acquire 100% stake in Sobek Auto Pvt Ltd. the entity which bought OLX India’s Auto-motive business for cash consideration.
This acquisition will likely to be completed in 21-30 days.
The company which had raised funds from investors such as Temasek Holdings and Tiger Global prior to its public offering in 2021 had 1185 crore cash and cash equivalents on its books on a standalone basis.
The main objective behind the acquisition of OLX business is to provide synergistic benefits to the existing business of the CarTrade Tech.

CarTrade Tech has been founded in
CarTrade Tech is a multi-channel auto platform with a presence across vehicle types and value added services.
This platform operates under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and Auto Biz.
It enables new and used automobile customers, vehicle dealerships, vehicle OEM’s and other businesses to buy and sell their vehicles in a simple and efficient manner.
CarTrade Tech offers a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing new and pre-owned cars, two-vehicles as well as pre-owned commercial vehicles and farm and construction equipment.

Commission and fees from the auction and remarketing services of used vehicles.
Online advertising solutions on CarWale, CarTrade and BikeWale.
Lead generation for OEM’s, dealers, banks and other financial institutions and insurance companies.
Inspection and valuation services for banks and other financial institutions and insurance companies.