CarTrade, used car startup is ready to raise about $321.6 crore in its Series H round from
existing investors Temasek, Warburg Pincus (via Highdell Investments) and March Capital
Partners. Post this round, the firm’s valuation will increase by 35% to $521 million as
compared to its last funding in 2017 of Rs 242.3 crore.
Temasek, March Capital and Highdell have decided to invest Rs 107.2 crore each and gain
12,99,075 shares respectively. With 34.74% stakes worth $182.1 million, Warburg Pincus will
become the highest shareholder after the latest round. The Singapore-government owned
Temasek owns 26.7% stakes worth $140 million in the Mumbai-based firm.
March Capital and JP Morgan hold 9.87% and 12.03% in the company as irregular investors.
After this round, CarTrade’s Founder and CEO, Vinay Sanghi will be responsible for only
5.7% of stakes with total worth of about $30 million. The ESOP pool of the company stands at
6.86% and is values at $36 million.
CarTrade has various services in used car segment but it focuses on 2 specifically; auctioning
cars for NBFCs, dealers from banks, insurance companies and generating leads for new car
businesses. The company also acquired 51% stakes in Sriram Auto Mall, vehicle and
equipment auctioning platform that also trades in heavy commercial vehicles and farm
equipment. Last year, the startup reduced its franchise business and customer-facing
verticals.
Spinny and CarDekho, others in the industry too have raised capital in previous months. Used
cars industry has been attracting interest from investors and VC firms. Customer behavior
has taken a major shift due to the ongoing pandemic. Cars are taken as the safest mode of
personal travel which has given a boost to the pre-owned car segment.