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CarTrade.com is one of India’s leading online auto marketplace transacting in new and used vehicles. It provides a structured platform to buyers and sellers to transact in new and used vehicles. CarTrade has the largest selection of certified used cars across India with a strong network of more than 4000 dealers. For new car buyers, there are features such as reviews, on-road prices, car comparisons and latest news.
Vinay Sanghi is the founder and CEO of CarTrade. Talking about his educational background, he has Bachelor’s Degree in Commerce from Sydenham College and later he moved to the United States for higher education. He completed his Masters in Business Administration from the University of Virginia and then worked for eBay India as Country Manager
Before starting CarTrade.com, Vinay was associated with the Mahindra First Choice Wheels Ltd. Starting in 2000 as CEO of Mahindra and Mahindra for over 8 years. Vinay Sanghi has been the driving mind behind the idea of CarTrade.com
CarTrade has raised the total sum of 240 million dollars in 6 rounds of funding from 7 different investors.
In August 2011 Cartrade raised around 600 million rupees from Canaan Partners, Tiger Global Management. Then in October 2014 company raised other 30 million dollars existing investors plus a new investor named Warburg Pincus.
Since last year 2 rounds of funding were held in first round company raised around 9.5 billion rupees from three new investors Warburg Pincus, March Capital Partners, Temasek Holdings and in the second round held in February this year Temasek Holdings again invested 55 million dollars into the company.
CarTrade acquired a competitive website CarWale.com in November 2015 in all-cash deal of 90 million dollars
CarTrade Business Model:
CarTrade.com’s business can be divided into two parts:
- CarTrade.com, the consumer portal where the users can visit to buy and sell used/new cars. This Platform is for business-to-business (B2B) and business-to-consumer (B2C) operations.
- CarTrade Exchange, the dealer portal which helps them manage their business operations.This Business to Business dealer portal which allows dealers to manage their online auctions and sales.
Other than the online marketplace, it has the physical presence with a network of over 4,000 dealers across 80 cities in India. The website currently lists over 1,65,000 certified used cars.
Cartrade Revenue Model:
CarTrade major source of income is through display advertising AdSense. CarTrade provides car-purchase leads for original equipment manufacturers, used car sales, finance, and valuations, and handling customer relationship management for car dealers.
CarTrade charges 1.5% of the price on a successful sale of a car, 2% of the sale price of a two-wheeler.
CarTrade’s biggest competitor in Indian market is cardekho.com and Droom which provides similar kind of services. Cardekho partnered with more than 4000 car dealers across the nation whereas Droom offers a wide range of automobile services such as warranty, RSA, insurance, and auto loan.