The transaction aims at creating India’s Largest Offline and Online Vehicles Transaction Platform for its Customers
Shriram Transport Finance Company Limited (STFC), Shriram Automall India Limited (SAMIL) and MXC Solutions India Private Limited (CarTrade) have entered into definitive agreements that will result in the combination of the two businesses creating India’s leading used vehicle platform.
CarTrade, India’s leading online automotive business will acquire majority stake in Shriram Automall India Limited (SAMIL), India’s No.1 physical auction platform for pre-owned vehicles from STFC. CarTrade will also outsource its 100% Auction Business to SAMIL and sells its equity to SAMIL in Adroit Inspection Services Pvt. Ltd., which offers services like valuation & inspections to Insurance and Banks & NBFC industry. Through this combination SAMIL is set to become an outright entity that offers both physical and online auction platforms to its customers in an unprecedented manner. With this partnership SAMIL expect business to double in the next 3 years.
Under this arrangement, India’s leading automotive platform CarTrade gets majority equity stake by paying Rs 156.37 Cr to STFC as consideration for acquisition of shares of SAMIL. Further SAMIL will acquire 100% equity in Adroit Inspection Services Pvt. Ltd. from CarTrade by paying Rs. 13 Cr as consideration. In the joined entity, Sameer Malhotra, current whole time Director and CEO of SAMIL will continue to hold his position.
According to Mr Umesh G. Revankar, Managing Director and CEO of STFC, “We’re very happy to partner with CarTrade. This proposition will not only create an enhanced market place for transaction of pre-owned vehicles & equipment but also add value proposition to business via technology & digital expertise. Together this will also open avenues for us to enter into new segments of vehicle finance and we’re confident to go further and serve our customer with better solutions & services.”
Vinay Sanghi, Founder and CEO of CarTrade said, “We were looking for a player with physical presence all around the country to support our online marketplace. SAMIL is the only player available in country with unique physical bidding concept and a leader like Sameer who has unparallel knowledge of both Physical and Online auction. We’re happy to come together with STFC and SAMIL to provide holistic solutions to our customers.”
Mr Sameer Malhotra, Director and CEO of SAMIL quoted, “We’re growing exponentially at 30% year on year basis and were looking for more innovative thought partners to grow multi-fold at over 50% in coming years. We have around 5 million customers support at shriram group; joining hands with CarTrade Exchange will add another 5 million digital customer base, besides their technology expertise. This partnership will result in an immense increase in business transactions. We’re having years of expertise into commercial vehicle segment, with this partnership will be aiming to create new and unique value propositions in passenger vehicle market as well.”
ZBA (Zarir Bharucha & Associates) and Wadia Ghandy & Co were the legal advisors to the transaction and Dhruva Advisors LLP acted as the transaction advisors.