With the help of CarTrade, OLX Autos has finally found a buyer after searching for an acquisition for a while. According to a stock exchange disclosure by CarTrade, the automotive classifieds website is planning to buy OLX India’s auto business in a deal worth Rs 537 crore.
CarTrade (CarTrade Tech Limited) announced in a filing at the National Stock Exchange that it has entered into a share purchase agreement with Sobek Auto India Private Limited (Sobek) and its parent company, OLX India B.V.
The purchase of Sobek will be made for a cash payment of Rs. 537.43 crores, which is due on the day the acquisition is completed.
The acquisition is anticipated to be finished in less than 30 days, and the transaction will be entirely cash-based. This agreement calls for the purchase of OLX India’s entire 100% stake in Sobek. On June 30, Sobek purchased the online classifieds operation from OLX India.
In March of this year, OLX decided to stop operating its OLX Autos division in a number of nations. The company reportedly considered merging with other businesses in the industry but ultimately chose CarTrade. Recently, it let go of more than 800 employees worldwide, including hundreds in India.
Given the difficulties CarTrade has faced since going public, the acquisition makes sense. In August 2021, it nearly cost Rs 1,600 to list on the NSE. As of right now, it trades at around Rs 486 and has a market value of $278 million, or Rs 2,280 crore.
“This acquisition aligns with the company’s strategic goals of making investments that bring synergistic advantages to CarTrade’s existing businesses,” said CarTrade in filings.
While Sobek’s FY23 figures were unavailable, during FY22, it saw an 87.5% increase in gross merchandise volume (also known as GMV) to Rs 1,110.4 crore from Rs 592.3 crore.
