The company had filed its DRHP with SEBI on May 15, 2021
The company has appointed Axis Capital, Citigroup Global Markets India, Nomura Financial Advisory and Securities (India) and Kotak Mahindra Bank to manage the issue
Mumbai: CarTrade Tech on Monday received market regulator Securities and Exchange Board of India’s (SEBI) nod for the Initial Public Offering (IPO) to raise around ₹2,000 crore.
The company had filed its DRHP with SEBI on May 15, 2021, is a multi-channel auto marketplace enabling new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses via its several scalable and vertically integrated brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and Auto Biz.
The company has appointed Axis Capital, Citigroup Global Markets India, Nomura Financial Advisory and Securities (India) and Kotak Mahindra Bank to manage the issue.
The issue is a complete offer for sale of 12,354,811 equity shares by investor and Other Selling Shareholders. There will be no funds received by the company via this Initial Public Offering.
In recent years, the company expanded its business, its total income increased at a cumulative annual growth rate (CAGR) of 45.94% between FY18 and FY20.
It turned profitable since FY19, and since then it operates on an asset light business model, operating only 114 automalls which are in majority leased or rented from third parties. Its operating expenses grew at a lower rate than the revenues due to its operating, sales and marketing and technology leverage over the broad revenue base. CTL plans to continue investing into technology such as AI and machine learning in order to provide more relevant and timely information to its customers and enhance user experience.
Founded in 2009 by Vinay Sanghi, former CEO of Mahindra First Choice, and Rajan Mehra, former country head of eBay India, CarTrade has received funding from Canaan Partners, Epiphany Overseas Ventures, Tiger Global, Temasek, March Capital, Warburg Pincus and investor Austin Ligon.
CTL generates revenues from commission and fees from auctions and remarketing services, online advertising solutions, lead generation, technology based services to OEMs/Dealers/Banks and other financial institutions and inspection and valuation services.
It offers a variety of data-driven solutions across automotive transaction value chain for marketing, buying, selling and financing of new and pre owned cars, two wheelers as well as pre owned commercial vehicles and farm and construction equipment.
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