CarTrade acquires Adroit Inspection

MSC Solutions, which owns online automobile classifieds platform CarTrade, has acquired vehicle inspection in an all-cash deal more than a year after buying rival CarWale.

The acquisition was made about three months after the Mumbai-based company raised $55 million in a fresh round of funding co-led by its existing backer Temasek and a US-based family office, whose name was not disclosed. Adroit Inspection is the country’s largest auto inspection company and is expected to inspect 1 Million vehicles this year.

Adroit Inspection undertakes inspection and valuation of automobiles for clients including banks, insurance companies, and non-banking finance companies. Adroit Inspection claims to have over 300 inspectors across the country. In November 2015, it acquired rival CarWale from German media conglomerate Axel Springer for an estimated $90-$100 million, a transaction primarily funded by its $145million equity financing round led by Temasek Holdings, the government of Singapore-owned Investment Company, US-based investment firm March Capital and Warburg Pincus.

CarDekho, which is backed by Hillhouse Capital, Google Capital, and Sequoia Capital, has made about nine acquisitions over two years. According to industry estimates, India's automobile sector, including services, is the third-largest in the world, valued at about $125 billion, and is expected to touch $250 billion by 2020. The online segment currently contributes less than 1% to the overall figure and is expected to expand to 8% over three to four years.