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. 

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.