India-based automotive marketplace CarTrade Tech has completed the acquisition of Sobek Auto India Private Limited, the parent entity of OLX Autos’ transactional businesses and horizontal classified site OLX.in.
According to a news release, the 100% acquisition of Sobek was completed on Aug. 11 following a cash payment of INR5.4 billion ($64.3 million U.S.). The all-cash deal saw CarTrade Tech receive over 7.5 million shares in Sobek. CarTrade confirmed the imminent deal a month ago, stating that OLX India would operate as an independent, wholly-owned subsidiary of the company.
“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,” a statement read. Sobek’s turnover for FY21-22 stood at INR11.1 billion — nearly double the corresponding INR5.9 billion in FY20-21.
In March, OLX owner Prosus expressed its intention to sell its global autos division, citing the increased cost of capital, elevated inflation and the reversal of pandemic trends on the used-car market. Less than a week before that, CarTrade Tech had launched CarTrade Ventures to seek out acquisition opportunities in the automotive sector.
Founded in 2009 and headquartered in Mumbai, CarTrade Tech operates CarWale, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz, in addition to 73 CarWale AbSure outlets in 33 Indian cities. It posted INR1.1 billion in consolidated revenue for the three months to June 2023 (Q1 FY23-24).
