Funding · Commerce & Consumer Brands

CarTrade raises ₹184 crore from Malabar India Fund and IIFL

By Startup Enthusiast · 12 April 2021

What they do

CarTrade runs an online marketplace for buying and selling used cars, tractors, and farm equipment

It raised ₹184 crore ($25 million) from Malabar India Fund and IIFL at a valuation of ₹7,100 crore

The company is reportedly planning an IPO in 2021 to raise about ₹2,000 crore

CarTrade raised ₹184 crore ($25 million) from Malabar India Fund and IIFL.
The round closed on March 31, 2021, via allotment of 13,36,310 equity shares.
Malabar India Fund invested ₹109 crore and IIFL invested ₹75 crore.
The post-money valuation was ₹7,100 crore ($967 million) as of March 31, 2021.
This valuation nearly doubled from ₹3,930.3 crore ($525 million) in June 2020.
Malabar India Fund picked a 1.54% stake and IIFL picked a 1.06% stake.
CarTrade also converted share warrants held by Sanghi into equity shares worth ₹57.3 crore.
The company changed its name from MXC Solutions India Private Limited to Car Trade Tech Private Limited.

CarTrade became the second-highest valued startup in the automobile segment in India.
Its valuation nearly doubled in less than a year, from ₹3,930.3 crore in June 2020 to ₹7,100 crore in March 2021.
Competitor Cars24 raised $200 million in November 2020 at a valuation of over $1 billion.
The company is reportedly planning an IPO in 2021 to raise about ₹2,000 crore.

CarTrade operates core verticals: auctioning cars, tractors, trucks, and farm equipment for dealers from banks, NBFCs, and insurance companies, and lead generation for new cars.
It acquired CarWale in 2015 and a majority stake in Shriram Automall in 2018.
Its offline auction business runs under Shriram Automall, and lead generation for OEMs runs through CarWale.

Funds will be used for capital expenditure, business expansion, and a possible foray into the financing business.
The company is reportedly planning an IPO in 2021 to raise about ₹2,000 crore.

Malabar India Fund (lead) — India-focused hedge fund founded in 2008, led by Sumeet Nagar, backed by US and Asian institutional investors.
IIFL (participated)