CarDekho buys Volob Technologies

Jaipur based Girnar Software Pvt. Ltd which owns and operates online portals CarDekho.com, Gaadi.com and Zigwheels.com has acquired Volob Technologies, a virtually reality startup in all cash deal. The deal size was undisclosed.

This is the third acquisition that the company has made this year. In April, it bought SaaS Startup Connecto and roadside assistance start-up Help on Wheels Pvt. Ltd in a cash and stock deal. Volob was founded in 2010 and provides 3D visualization solutions to various industries, primarily automotive, and this acquisition will strengthen 3D visualization capabilities of CarDekho by use of virtual and augmented reality.

CarDekho.com acquisition of Volob is aimed at amplifying the visual experience of car buyers in both real and virtual settings. GirnarSoft has enriched its value proposition for online buyers, dealers and OEMs. CarDekho, which is currently valued at $380 Million, raised funds from Google Capital and Hillhouse in March. The company that started out as a portal for used cars branched out to provide new car services after it acquired Gaadi.com in 2014.

Revenue generation for the company is greatly dependent on advertisement revenues from the new car segment. The strategy to move to the new car segment was adopted by rival CarTrade.com that acquired CarWale.com in 2015 and also raised Rs950 crore in a round led by Singapore based investment firm Temasek and March Capital this year. As part of its expansion plans in India, CarDekho is looking to add value added services. It launched insurance, accessories and tyres last year, in addition to roadside assistance services.

CarDekho acquires Help on Wheels

Girnar Software Pvt. Ltd, which runs online auto classifieds portal CarDekho, has acquired roadside assistance firm Help on Wheels Pvt. Ltd, for an undisclosed amount. The acquisition comes two weeks after Girnar Software raised an undisclosed amount of funding from Google Capital.

The used car market in India is currently as big as the new car market. The report adds that first time buyers in India are increasingly opting for pre-owned cars. Companies operating in the used car space have been raising funds to compete in one of the fastest growing business verticals. Girnar acquisition will help the company compete against its rival Cartrade.com which raised INR 950 crore in funding led by Singapore based investment firm Temasek and March Capital.

The company had raised $30 Million in 2014 from a group of investors that included Tiger Global, Warburg and Canaan Partners. Help on Wheels was founded in 2014 and has a client base of 50,000. All the employees of Help on Wheels will be absorbed by CarDekho. Girnar Software, which operates other portals, including Zigwheels, Gaadi.com, Pricedekho.com and Bikedekho.com, had raised $50 Million in January 2015 from Hillhouse, Tybourne, and Sequoia Capital.

In the last two years, the company has acquired four other companies – Drishya360, Gaadi.com, Zigwheels and BuyingIQ. Other auto classifieds start-ups include Droom Technology Pvt. Ltd, which raised $16 Million in a round led by Lightbox in July last year and Truebil which raised $500,000 in its first funding round from KAE Capital in June last year.