Mumbai-headquartered used car platform CarTrade Tech is lining up Rs 537 crore towards acquiring Olx India’s auto sales business. It will acquire 100 percent stake of Sobek Auto India (Sobek), which operates Olx India’s auto business.
It was on June 30, Sobek acquired the classifieds internet business from Olx India on the terms and conditions agreed under a business transfer agreement. Sobek entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology.
CarTrade Tech will now take over Sobek for a consideration of Rs 537.43 crore. The “acquisition is in furtherance of the strategic objectives of the company to undertake investments which provide synergistic benefits to the existing businesses” said the company in a regulatory filing.
The Mumbai-headquartered company is backed by investors including Warburg Pincus, Temasek, JPMorgan, and March Capital, and operates as a multi-channel auto platform. The platform deals in buying and selling of both used and new cars, as well as other value-added services.
In terms of financial turnover, Sobek’s revenue has grown from Rs 556.42 crore in FY2020 to Rs 1,110.40 crore in FY2022.
