<ul><li><keyword id="4306161" type="General" weightage="20" keywordseo="cars24" source="Orion">Cars24</keyword> has raised a funding of $450 million from marquee investors of the startup ecosystem.</li><li>It is reportedly valued at $1.75 billion, followed by Droom with a $1.2 billion valuation.</li><li><keyword id="1980082" type="General" weightage="20" keywordseo="cartrade" source="Orion">CarTrade</keyword>, despite being profitable, has not been able to cross the billion dollar mark.</li></ul>Gurugram-based used cars marketplace Cars24 became a unicorn last year and raised some more money now despite piling up losses. Meanwhile, its competitor CarTrade Technologies, which is profitable and listed on the stock exchanges since August, continues to be valued at less than half the estimated valuation of Cars24. <br /><br />                  <div type="image" title="Loss-making Cars24 is worth more than a profitable CarTrade ⁠— here’s why" msid="86158018" hostid="261"></div><br />Analysts say this could have to do with who’s investing in both companies and the latter’s international presence. Nearly three weeks after its listing, CarTrade remains an underperformer even in the stock market whereas, last week, Cars24 raised more funding and raised its valuation to somewhere between $1.72 billion to $1.75 billion. <br /><br />On September 10, <a href="https://entrackr.com/2021/09/exclusive-cars24-raises-259-mn-at-around-1-75-bn-valuation/" data-type="tilCustomLink">eight marquee </a>investors of the startup ecosystem pumped in $258.6 million into Cars24, which had turned into a unicorn last year in November, after raising<a href="https://www.businessinsider.in/business/startups/news/cars24-is-indias-latest-unicorn-as-it-raises-200-million-from-dst-global-and-existing-investors/articleshow/79388631.cms"> $200 million</a> in a round led by DST Global. A unicorn, in startup purlance, is a company valued over a billion dollars. Cars24 was the first startup to cross the threshold in this segment of its operation.<br /><br />Later it was reported that the <a href="https://www.cars24.com/blog/cars24-raisesi-450-million-nearly-doubles-its-valuation-to-1-84-billion/" data-type="tilCustomLink">round aggregated up to $450 million</a>, of which $340 milion was equity investment while $110 million was raised in debt. The company was valued at 1.84 billion post this round.  <br /><br />It is followed by Droom, which was recently<a href="https://www.businessinsider.in/business/startups/news/droom-automobile-marketplace-raises-200-million-in-a-pre-ipo-round-at-unicorn-valuation/articleshow/84818567.cms"> valued</a> at $1.2 billion. Meanwhile, CarDekho is in advanced stages of talks to close a funding round with over $1 billion valuation.<br /><br />These were the investors who bet big bucks in Car24’s latest round.<br /><br />Kunal Khatter, managing partner at mobility-focused investment firm AdvantEdge, told Business Insider that private investors and retail investors value companies with different yardsticks.<br /><br />“Analysts in the public market are far more stringent on how they value and give recommendations for buy or sell, because they are answerable to the public.. On the private side, valuation is an outcome of what an incoming institutional investor thinks the company is going to be worth…” Khatter added.<br /><br />Ankur Bansal, co-founder of investment firm BlackSoil noted that the difference in revenue and scale of the companies has also resulted in the difference of valuations. However, valuations of public listed companies are considered as a benchmark because each analyst or firm can have different methods to value a business.<br /><br />Point of difference between CarTrade and Cars24 (Cars24 Services Private Limited).<br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Metrics<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CarTrade<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cars24 <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue (in FY20)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹318.4 crore<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,059 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Profit after tax/(Loss) (FY20)<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹31.2 crore <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">(₹277.18 crore)<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cities<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">300<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">150<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Countries<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">India<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">India, Australia, UAE<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />Founded by Vikram Chopra, Gajendra Jangid, Ruchit Agarwal and Mehul Agrawal, Cars24 allows customers to sell their old cars through their omnichannel network. A consumer can simply book an appointment with any of the Cars24 branches, visit the branch and sell a car in a single visit. The company has recently expanded to Australia and UAE.<br /><br />AdvantEdge’ Khatter also noted that these two businesses, Cars24 and CarTrade, may look similar on the outside but are in fact very different at their core which has led to difference in the valuation.<br /><br />CarTrade also owns other platforms like CarTrade, Carwale, CarTradeExchange, Shriram Automall, Adroit Auto, Auto Biz, and BikeWale. Majority of CarTrade’s valuation comes from its three assets: Carwale, commercial trucks platform Shriram Automall and inspection business Adroit Auto, Khatter added.<br /><br />The whole reason why CarTrade is profitable is because of Carwale, but again it's a classification that allows you to compare prices. The other two businesses are profitable too, but don’t generate a lot of revenue, Khatter said. “They are market leaders in all these spaces, but the problem with market leaders is that there is not much room to grow,” he said.<br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Segment<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CarTrade<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Cars24<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New automobile sales<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Used car sales<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Commercial vehicles, farm and construction equipment<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Online auction platform<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">No<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Vehicles financing <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Car inspection<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />Cars24 has also positioned itself as US-based Carvana, an online dealer of pre-owned cars, which has a market cap of $27.7 billion. “This is why foreign investors are more comfortable giving that sort of premium to Cars24,” Khatter added. On the other hand, CarTrade doesn’t have any international presence. <br /><br />“The original CarTrade was a business-to-business car auction platform, which banks used to liquidate assets. That’s not a real value generator because the margin is very low. They are the market leaders in that, yes, but it's a very limited tank,” he added.<br /><br />ALSO WATCH: Droom founder Sandeep Aggarwal's interaction with Business Insider, where he talks about the company's surging valuation, upcoming IPO and expansion plans. <br /><br />          <div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[<blockquote class="twitter-tweet"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/HangoutwithBI?src=hash&amp;ref_src=twsrc%5Etfw">#HangoutwithBI</a>: All you need to know about the first Indian startup from the auto space getting ready to hit the capital markets. <a href="https://twitter.com/iyer_sriram?ref_src=twsrc%5Etfw">@iyer_sriram</a> in conversation with <a href="https://twitter.com/letsdroom?ref_src=twsrc%5Etfw">@letsdroom</a>&#39;s Sandeep Aggarwal (<a href="https://twitter.com/SandeepAgg?ref_src=twsrc%5Etfw">@SandeepAgg</a>). <a href="https://t.co/4dN4lzjbiQ">https://t.co/4dN4lzjbiQ</a></p>&mdash; Business Insider India🇮🇳 (@BiIndia) <a href="https://twitter.com/BiIndia/status/1421014841565712386?ref_src=twsrc%5Etfw">July 30, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>]]></cdata></div><br /><i>Update: Cars24 on September 20 announced that it raised $450 million, at a valuation of $1.85 billion. </i><br /><br /><strong>SEE ALSO</strong><br /><a href="https://www.businessinsider.in/stock-market/news/reliance-infra-reliance-industries-zomato-and-other-top-stocks-to-watch-out-for-on-september-13/slidelist/86156619.cms">Reliance Infra, Reliance Industries, Zomato and other top stocks to watch out for on September 13</a><br /><a href="https://www.businessinsider.in/international/news/the-first-transgender-person-elected-bishop-in-a-major-christian-church-wants-to-inspire-hope-and-expand-peoples-minds-about-trans-people/articleshow/83528986.cms">The first transgender bishop in a major Christian church wants to inspire hope and expand people's minds about trans people</a><br /><a href="https://www.businessinsider.in/entertainment/news/superhero-movies-have-a-deep-connection-to-9/11-and-it-shows-how-nyc-and-disney-capitalized-on-our-collective-grief/articleshow/86116230.cms">Superhero movies have a deep connection to 9/11, and it shows how NYC and Disney capitalized on our collective grief</a><br />

Loss-making Cars24 is worth more than a profitable CarTrade ⁠— here’s why

Three unicorns, hundreds of crore in loss and very little market share — What's the hype around online car retailers?

<ul><li><keyword id="11240103" type="UNKNOWN" weightage="20" keywordseo="cartrade-ipo">CarTrade IPO</keyword> offers an attractive opportunity to invest in a new age business, say analysts.</li><li>CarTrade IPO opens on August 9 and will close on August 11.</li><li>Online auto classifieds platform looks to raise ₹2,999 crore through the issue.</li><li>It has already raised ₹900 crore from anchor investors ahead of its initial public offering (IPO).</li></ul>CarTrade is the latest one in the long line of tech startups tapping the public market with initial public offerings (IPO). Unlike Zomato, this would be the first profitable startup to hit the stock market since EaseMyTrip. <br /><br />The company is a 12-year old startup that operates online platforms like CarWale, CarTrade, BikeWale, CarTradeExchange and AutoBiz for users interested in buying and selling new and used vehicles. <br /><br />The IPO of the company opens Monday and closes on August 11. It is looking to raise around ₹3,000 crore through the public listing. <br /><br />Let us see what the analysts have to say about the company’s IPO:<br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Broking firm<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Recommendation<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Nirmal Bang<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Choice Broking<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">ICICIdirect<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Investmentz<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Subscribe<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody></table><br />CarTrade is a profitable player in India and one of the few players internationally in the vehicle platform space. Further, with funds of ₹668 crore in its balance sheet, CarTrade is well positioned and plans to capture adjacent business opportunities such as insurance, financing, servicing of vehicles, accessories and refurbishment and sale of cars. <br /><br />The public issue of the company is opening with a price band of ₹1,585-1,618 per share. Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35% for retail investors and the remaining 15% for non-institutional investors.<br /><br />Analysts at Choice Broking have similar opinions about the company. “CarTrade is an electronic exchange focusing on auto sector and thus there is no peer company having similar business operations. At a higher price band...we feel it is attractive considering its scalable business model, profitable operations and business growth opportunities in the auto sector value chain,” said the report. <br /><br />The company’s revenue from operations have increased at a compound annual growth rate (CAGR) rate of 26.4% over FY18-FY21. <br /><br />CarTrade offers a unique play on rising digitisation of new and pre-owned vehicle translation value chain/ecosystem, said a report by ICICIdirect. “We assign ‘subscribe’ rating to the issue for listing gains. Long term wealth generation at CarTrade Tech will be a function of scalability, relevance and journey towards healthier return ratios,” said the report by ICICIdirect. <br /><br /><table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Particulars<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY21<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY20<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY19<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Profit<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹101.07 crore<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 31.3 crore<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 25.9 crore<br /><br /></td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Revenue<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 281.5 crore<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 318.4 crore<br /><br /></td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹ 266.8 crore<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody></table><br /><strong>SEE ALSO:<br /><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/freshtohome-and-bluestone-backer-iron-pillar-is-planning-to-bring-assets-worth-1-billion-under-management/articleshow/85161486.cms">FreshtoHome and BlueStone-backer Iron Pillar is planning to bring assets worth $1 billion under management</a><br /></strong><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/news/nasa-wants-paid-volunteers-to-spend-a-year-living-in-a-3d-printed-martian-habitat-in-texas-where-they-will-carry-out-spacewalks-and-research-using-vr-tech/articleshow/85149673.cms"><strong>NASA wants paid volunteers to spend a year living in a 3D-printed Martian habitat in Texas, where they will carry out spacewalks and research using VR tech</strong></a><br />

CarTrade IPO ⁠— the share sale by this profitable tech startup gets a unanimous call for ‘subscribe’

<ul><li>Indian auto companies are looking at mixed demand momentum after making merry post the festive season boost in October.</li><li>The festive boost last month lifted the number of registrations across the passenger vehicles (PV), commercial vehicles (CV) and tractors segments in the range of 35-66% when compared to October 2019.</li><li>However, PV sales are off to a slow start in the marriage season in November, despite an increase in discounts.</li><li>Two-wheeler registrations are also still below pre-Covid levels, but the urban markets are driving the demand for scooter and premium motorcycles, say analysts.</li></ul>Indian auto companies are looking at mixed demand momentum after making merry post the festive season boost in October. Retail data suggests that trends remain mixed across segments like two-wheelers, passenger vehicles, and commercial vehicles.<br /><br />The<a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms"> festive boost in October</a> lifted the number of registrations across the passenger vehicles (PV), commercial vehicles (CV) and tractors segments in the range of 35-66% when compared to October 2019, according to a report by Jefferies.<br /><br />While the marriage season has set in now, a report by Yes Securities states that passenger vehicles are off to a slow start in November despite an increase in discounts compared to October.<br /><br />Commercial vehicles are also seeing an increase in inventories across companies, the report stated, adding “Large fleet operators have staggered their delivery schedules while retail customers' contribution is yet to come in full swing.”<br /><br /><cmsannotation type="cmsannotation" annotationid="Two-wheeler registrations still below pre-Covid levels" comment="subhead" text="Two-wheeler registrations still below pre-Covid levels"><span data-til="noop">Two-wheeler registrations still below pre-Covid levels</span></cmsannotation><br /><br />Two-wheeler registrations are still below pre-Covid levels, with Hero MotoCorp and TVS Motors expected to report a sequential decline in sales in the range of 14.2-17.9%, according to Yes Securities.<br /><br />In October, an Elara Securities<a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms"> report</a> stated that Hero MotoCorp reported a 17% decline in its overall sales, while Bajaj Auto reported a 10% decline. The only gainer was TVS Motors, which reported a 1.5% increase year-on-year.<br /><br />Now, according to Yes Securities, overall two-wheeler retail sales could decline between 5-8% in November when compared to October. On a year-on-year basis, though, it notes that there could be flat to high-single digit growth.<br /><br />“Compared to the past few months, 2W demand saw some bounce back during this festive season. However, the registrations were far from reaching the pre-pandemic levels in 2019,” said Nikunj Sanghi, former president, Federation of Automobile Dealers Associations of India (FADA).<br /><br /><cmsannotation type="cmsannotation" annotationid="Marriage season off to a slow start, SUVs perform relatively better" comment="subhead" text="Marriage season off to a slow start, SUVs perform relatively better"><span data-til="noop">Marriage season off to a slow start, SUVs perform relatively better</span></cmsannotation><br /><br />The Yes Securities report observes that the trend of entry-level cars struggling has continued through November. Additionally, hatchbacks are also seeing a slow uptake from customers.<br /><br />Sports utility vehicles (SUV), on the other hand, are seeing relatively better demand. However, companies are still facing supply chain issues, which is hampering their overall sales.<br /><br />“PVs are still facing supply challenges in premium variants impacting overall model mix at retail level,” the report stated.<br /><br /><cmsannotation type="cmsannotation" annotationid="Higher discounts on entry-level cars as inventory builds up" comment="subhead" text="Higher discounts on entry-level cars as inventory builds up"><span data-til="noop">Higher discounts on entry-level cars as inventory builds up</span></cmsannotation><br /><br />Car makers are now offering higher discounts on entry-level cars as they attempt to reduce the inventory build-up, which has now increased to over 15 days, according to the Yes Securities report.<br /><br />For instance, <keyword id="44883" type="General" weightage="20" keywordseo="Maruti-Suzuki" source="Orion">Maruti Suzuki</keyword> has increased discounts in the range of ₹5,000-10,000, while Tata Motors is offering up to ₹10,000-15,000 more discounts in November, when compared to October.<br /><br />Overall, Maruti Suzuki, Tata Motors, and Mahindra &amp; Mahindra are offering discounts and benefits in the range of ₹28,000-65,000, depending on the car being bought.<br /><br /><cmsannotation type="cmsannotation" annotationid="Rural recovery signs visible" comment="subhead" text="Rural recovery signs visible"><span data-til="noop">Rural recovery signs visible</span></cmsannotation><br /><br />Rural India, a critical market especially for two-wheeler and tractor makers, is showing signs of a recovery, according to analysts at Motilal Oswal.<br /><br />“Rural recovery resulted in a healthy 26% and 30% YoY growth in 2W and tractor retails during festive season, respectively, even as secondary 2W dealers (mainly non-urban) saw strong demand revival,” the research firm said.<br /><br />The firm noted that despite the demand revival in the festive season, “full normalcy is yet to be achieved.” It added that urban markets continue to see better demand than rural markets, which reflects in the scooter and premium motorcycle segments’ growth.<br /><br />For instance, Royal Enfield’s Hunter 350, a premium motorcycle, has seen its waiting period increase from 1 month to 2.5-3 months, with dealer confidence seeing a sharp increase.<br /><br />“Channel partners we spoke to are indicating high confidence post launch of Hunter with their volumes are ~15% lower than FY18 levels but are back to FY19 levels,” the Yes Securities report stated.<br /><br /><cmsannotation type="cmsannotation" annotationid="Tighter cash flows and slower uptake leading to inventory build-up of trucks" comment="subhead" text="Tighter cash flows and slower uptake leading to inventory build-up of trucks"><span data-til="noop">Tighter cash flows and slower uptake leading to inventory build-up of trucks</span></cmsannotation><br /><br />Commercial vehicles like trucks continue to witness an inventory build-up, with the key market of the northern belt witnessing under-utilisation, according to Yes Securities.<br /><br />Making matters worse and adding to the uncertainty is the ban on construction activities in the Delhi-NCR region, and schools being shut due to pollution. This has impacted the demand for both buses and trucks, according to analysts.<br /><br />According to Yes Securities, tighter cash flows due to an increase in working capital requirements, customers have delayed delivery plans of booked vehicles, adding to the build-up of inventories.<br /><br /><div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="498538881">  <p lang="en" dir="ltr">$TVSMOTOR.NSEDaily:👉 It is one of the best performing stock in Auto space, as it is near All Time High &amp; has been in consistent uptrend.👉 It has already tested 1000 Big Round Number as support recently. 👉 Any bullish bounce near 1000-1010 will be least risk opportunity to board the bullish train.  </p>&mdash; (@Tradingmonks) <a href="https://stocktwits.com/Tradingmonks/message/498538881"> November 29, 2022</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div><br /><strong>SEE ALSO:<br /><br /><a href="https://www.businessinsider.in/business/auto/news/indian-car-makers-drive-the-festive-boom-two-wheelers-showing-signs-of-revival/articleshow/95257140.cms">Indian car makers drive the festive boom, two-wheelers showing signs of revival</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/a-year-after-market-debut-paytm-is-the-worst-performer-among-recent-large-ipos-cartrade-policybazaar-and-lic-join-the-party/articleshow/95762071.cms">A year after market debut, Paytm is the worst performer among recent large IPOs – Cartrade, Policybazaar and LIC join the party</a><br /><br /></strong><a href="https://www.businessinsider.in/stock-market/news/india-vix-cools-down-to-pre-covid-levels-heres-why-and-where-it-is-headed/articleshow/95743166.cms"><strong>India VIX cools down to pre-Covid levels – here’s why and where it is headed</strong></a><br />

Mixed demand trends for autos in November as festive boost wears off but signs of rural recovery visible

Online auto classified platform <keyword id="1980082" type="PERSON" weightage="20" keywordseo="Cartrade">CarTrade</keyword> Tech on Friday said it has raised Rs 900 crore from anchor investors ahead of its initial public offering, which opens on Monday. The company has decided to allocate 55,59,664 equity shares to anchor investors at Rs 1,618 apiece, valuing the transaction size to Rs 899.55 crore, according to a circular uploaded on the BSE website.<br /><br />Nomura, HSBC Global, Goldman Sachs, Jupiter India Fund, Elara India Opportunities Fund, Aditya Birla Sun Life Insurance Company, Bajaj Allianz Life Insurance Company, Bharti Axa Life Insurance Company, Axis Mutual Fund (MF), HDFC MF, Kotak MF and Sundaram MF are among the anchor investors.<br /><br />The initial share-sale will be entirely an offer for sale (<keyword id="883402" type="ORGANIZATION" weightage="20" keywordseo="OFS">OFS</keyword>) of 18,532,216 equity shares.<br /><br />Among the investors participating in the OFS are -- CMDB II (22.64 lakh equity shares), Highdell Investment Ltd (84.09 lakh shares), Macritchie Investments Pte Ltd (50.76 lakh shares), and <keyword id="11723135" type="UNKNOWN" weightage="20" keywordseo="springfield-venture-international">Springfield Venture International</keyword> (17.65 lakh shares).<br /><br />Currently, CMDB II holds 11.93 per cent stake in CarTrade, Highdell Investment owns 34.44 per cent stake, MacRitche Investment has 26.48 per cent shareholding, and Springfield Venture International holds 7.09 per cent stake in the company.<br /><br />The public issue, with a price band of Rs 1,585-1,618 a share, will open for subscription on August 9 and conclude on August 11.<br /><br />At the upper end of the price band, the <keyword id="6354763" type="UNKNOWN" weightage="20" keywordseo="ipo">IPO</keyword> is expected to mobilise Rs 2,998.51 crore.<br /><br />Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent for non-institutional investors.<br /><br />Founded in 2009, CarTrade is backed by marquee investors -- <keyword id="6402698" type="UNKNOWN" weightage="20" keywordseo="warburg-pincus">Warburg Pincus</keyword>, Temasek, JPMorgan and March Capital.<br /><br />The CarTrade platform allows customers to buy and sell used cars as well as new cars.<br /><br />The firm is a multi-channel auto platform with coverage and presence across vehicle types and value-added services through its brands -- CarWale, CarTrade, <keyword id="209119" type="COMPANY" weightage="20" keywordseo="Shriram-Automall">Shriram Automall</keyword>, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.<br /><br />The company's consumer platforms i.e. CarWale, CarTrade and BikeWale, collectively get 3.2 crore average unique visitors every month (during the three-month period ending March 31, 2021), and Shriram Automall and other auction platforms had 8,14,316 vehicles listed for auction during FY21.<br /><br />The company generates revenues from commission and fees from auctions and re-marketing services, online advertising solutions, lead generation, technology-based services to OEMs, dealers, banks and other financial institutions, and inspection and valuation services.<br /><br />Axis Capital, Citigroup Global Markets India, Kotak Mahindra Capital Company and <keyword id="6600258" type="UNKNOWN" weightage="20" keywordseo="Nomura-Financial-Advisory">Nomura Financial Advisory</keyword> and Securities (India) Private Limited are the investment bankers to the issue.<br /><br /><br /><br /><br /><br /><br /><br /><strong>SEE ALSO <br /><a href="https://www.businessinsider.in/stock-market/news/krsnaa-diagnostics-ipo-open-today-check-out-how-to-apply/articleshow/85017014.cms">Krsnaa Diagnostics IPO opens—here is all you need to know</a><br /></strong><a href="https://www.businessinsider.in/business/startups/news/these-are-some-of-the-highest-paid-founders-of-indian-startups-tapping-capital-markets-this-year/slidelist/85005261.cms"><strong>These are some of the highest paid founders of Indian startups tapping capital markets this year</strong></a>

CarTrade raises ₹900 crore from anchor investors ahead of its IPO, issue opens on Monday

<img class="gwt-Image" src="/photo/51990703.cms" /> <br /> <keyword id="1980082" type="UNKNOWN" weightage="100" keywordseo="Cartrade">CarTrade</keyword>, the online auto classifieds platform which raised $145 million (Rs 960 crore) from Temasek Holdings, March Capital and Warburg Pincus earlier this year, is now planning to list on the bourses in the coming three years. <br />
<br /> "We are operationally profitable and are targeting increasing revenue by 2.5 times this year," <keyword id="457065" type="UNKNOWN" weightage="100" keywordseo="Vinay-Sanghi">Vinay Sanghi</keyword>, founder and CEO, told ET.<br />
<br />
As per CarTrade claims, it sells around 25,000 new cars and 30,000-40,000 pre-owned cars on its platform every month. As for the sources of revenue, there are three ways from where it earns: subscription fees from dealers registered on the platform, ad payments from automobile companies and fees from vehicle auctions that are conducted on the site. <br />
<br />
Ever since it was founded in 2010, CarTrade has partnered with more than 10,000 dealers of both new and used cars, lists more than 225,000 used cars for sale and auctions over 250,000 vehicles to the wholesale market every year. Because of this magnitude, it registers a monthly number of around 35 million unique visitors across its platforms.<br />
<br />
As part of its expansion plans, it is looking forward to introducing financing options by June and is in talks with multiple banks regarding the same. <br />
<br />
"The <a href="http://www.businessinsider.in/CarDekho-com-Raises-Fresh-Funds-Worth-Rs-307-Crore/articleshow/46044050.cms" target="_BLANK￿￿￿￿">pre-owned car market</a>, which is now sized at around 4 million units, is growing at the rate of 12-15 per cent. However, auto finance penetration in the used-car market is only about 10 per cent," said Sanghi. "We believe we can organise this market. There is a lot of potential to grow."<br />


After raising millions from investors, CarTrade is roaring loud with plans to list on bourses

<img class="gwt-Image" src="/photo/55837653.cms" style="width: 800px; height: 600px;" /><br />
<br /> Many things have changed since car e-commerce players such as <keyword id="1945738" type="UNKNOWN" weightage="20" keywordseo="Cardekho">CarDekho</keyword>, <keyword id="1980082" type="UNKNOWN" weightage="20" keywordseo="Cartrade">CarTrade</keyword>, <keyword id="2947589" type="UNKNOWN" weightage="20" keywordseo="Droom">Droom</keyword> etc. entered the market, some as old as 7 years back.<br />
<br />
<a href="http://www.businessinsider.in/Shopclues-launches-Reach-to-digitize-offline-merchants-payments/articleshow/55830955.cms">The customer has changed preferences and the online market has adapted accordingly.</a><br />
<br />
According to reports, unlike the new car market, India's used car market has had a relatively stable growth. From 1.6 million units (worth Rs 38,500 crore) in 2011, it is today pegged at 3.3 million units (Rs 96,000 crore). According to Nagendra Palle, MD, Mahindra First Choice Wheels Ltd, the used car or pre-owned car market will continue to grow at a steady pace of 15% to touch Rs 2,50,000 crore or 6.6 million units by 2021.<br />
<br />
This can be attributed to ownership cycles are shortening — from 6-7 years five years back, it today hovers around four years and is likely to dip further to 3.5 years by 2021. This is helping grow the available pool in the used car market.<br />
<br />
<a href="http://www.businessinsider.in/Housing-com-decides-to-Reintroduce-Rental-Offering/articleshow/55836041.cms">ALSO READ: Housing.com decides to Reintroduce Rental Offering</a><br />
<br /> <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> India Ltd, India’s largest car maker, reportedly even said that the local car market will reach 5 million units in annual sales by 2020, making the country the fourth-largest market in the world.<br />
<br /> <keyword id="195858" type="PERSON" weightage="20" keywordseo="Sandeep-Aggarwal">Sandeep Aggarwal</keyword>, CEO &amp; Founder, Droom told <keyword id="824043" type="COMPANY" weightage="20" keywordseo="Business-Insider">Business Insider</keyword> that innovation is the need of this market to drive sales. Droom started with being a second-hand car online marketplace and has recently started selling new <keyword id="20632" type="ORGANIZATION" weightage="20" keywordseo="Cars">cars</keyword>. “We have initiated measures such as pre-approved the loan, Test drive at the doorstep, collaborated a lot of companies for freebies, roadside assistance, and extended warranty to attract customers.<br />
<br /> Currently, we are seeing 50-60% traffic in online auto sales’’ says <keyword id="1443" type="PERSON" weightage="20" keywordseo="sandeep">Sandeep</keyword> when asked about where the company stands after two years of operations.<br />
<br />
<a href="http://www.businessinsider.in/EXCLUSIVE-IKEA-APAC-Head-talks-about-what-to-expect-from-the-upcoming-IKEA-store-in-Hyderabad/articleshow/55812739.cms">ALSO READ: EXCLUSIVE: IKEA APAC Head talks about what to expect from the upcoming IKEA store in Hyderabad</a><br />
​<br />
Companies like CarDekho have also taken to revamping their customer experience entirely using big-data analysis. From using new technology such as Virtual Reality to 3D technology, the company is making sure that from start (buying), owning to finish (selling) , they assist the customer.<br />
<br /> <keyword id="457065" type="UNKNOWN" weightage="20" keywordseo="Vinay-Sanghi">Vinay Sanghi</keyword> – Founder and CEO, CarTrade agrees with that sentiment. The company is planning to tap the used car financing industry and bridging the gap between customers and lenders in highly fragmented market where only 10% of the used cars are sold by registered sellers.<br />
So if you’re looking to buy a used car, you know that these portals are your best bet. From giving you the right price for a car to after-sales servicing the online car e-commerce space is catering to everything your car might need.<br />
<br />



EXCLUSIVE: This is what has changed in 2016 for consumers in the online car market

<img class="gwt-Image" src="http://cms.indiatimes.com/cms/app/image?wfid=495991&amp;l=219308" /><br />
<em>Balancing discounts, resale values and launches is a complicated equation and you need to give it a serious think before buying a new car, feels ET...</em><br />
<br />
Motor enthusiasts always wait for December to upgrade their cars. Car manufacturers and dealers offer a host of exciting offers and attractive discounts to clear the inventory before the New Year to make space for new models with higher prices in the showrooms. With passenger car sales falling by 8% in November, the discounts are even better this year as dealers are trying their very best to clear the stock.<br />
<br /> For example, <keyword id="47687" type="COMPANY" weightage="40" keywordseo="Nissan-Motors">Nissan Motors</keyword> is offering as much as 5.6 lakh off on the Teana and a discount of 40,000 on Micra. Maruti is offering a discount of 66,000 plus with four year free warranty on the A-star. <keyword id="596" type="CITY" weightage="40" keywordseo="Hyundai">Hyundai</keyword> is offering <keyword id="25450" type="UNKNOWN" weightage="40" keywordseo="savings">savings</keyword> of up to 48,500 on the diesel i20. Dealers are also pitching in with a few accessories or free <keyword id="35450" type="COMPANY" weightage="40" keywordseo="insurance">insurance</keyword> to further sweetening the deal.<br />
<br />
"A car depreciates in value by 10-12% every year. The extra discount would work in your favour if you plan to use the car for at least seven to eight years. If you change your car every two to three years, its better you wait for the new year," says Roshun Povaiah, of cartoq, an automobile website.<br />
<br />
<strong>Does it make sense to upgrade now?</strong><br />
<br />
Well, the answer is a tricky one. It depends on factors like the discount offered, how long do you plan to retain the car, resale value of the car at at that time (cars value depreciate by around 10-12% every year), among other things.<br />
<br /> Let us work with an example of <keyword id="45730" type="COMPANY" weightage="40" keywordseo="Maruti-A-Star">Maruti A-star</keyword> which is available for 4.71 lakh (on road price) in Mumbai. Currently, you could get a discount plus exchange bonus worth 66,000 as per dealers, which brings down the effective price to 4.05 lakh. If you sell this car in 2020, this 2013 model would approximately fetch a resale value of 1.94 lakh.<br />
<br />
Now, let us see what will happen if you wait for a few months to buy a 2014 model. The car will definitely command a better resale value of 2.50 lakh in 2020. However, despite the better resale value ( 56,000 more) it makes sense to buy the car in December because of the attractive discount ( 66,000).<br />
<br />
Nonetheless, if you plan to sell the in two or three years, this math may not work. Supposed you buy a Maruti A-star in December and sell it after three years. You will get 2.95 lakh for the car. If you buy the same car in 2014 and sell it in 2016, you may get 3.81 lakh. Here the difference is 86,000. So buying the car now is not a great idea.<br />
<br />
However, please note that it is not so simple to arrive at the resale value of your car. "The resale value is a combination of various factors, such as how much a car has run, the year of manufacture, fuel used, how well it has been maintained, how popular the car model is and the fuel efficiency," says Kunal Khattar, MD of Carnation Auto.<br />
<br />
<strong>Will prices go up in January?</strong><br />
<br /> Most car manufacturers hike prices and launch new models in January. With consumer price <keyword id="22195" type="COMPANY" weightage="40" keywordseo="Inflation">inflation</keyword> touching a high of 11.24%, there are chances that <keyword id="6371181" type="UNKNOWN" weightage="40" keywordseo="interest-rates">interest rates</keyword> could go up further.<br />
<br /> However, experts believe companies may not be in position to go for steep hikes because of a sluggish <keyword id="34412" type="ORGANIZATION" weightage="40" keywordseo="economy">economy</keyword> and higher interest rates.<br />
<br /> "With the <keyword id="6355302" type="ORGANIZATION" weightage="40" keywordseo="Rupee">rupee</keyword> depreciating by as much as 14% in calendar year 2013, manufactures are left with little choice other than hiking price," says Vinay Sanghi, managing director of <keyword id="1980082" type="UNKNOWN" weightage="40" keywordseo="Cartrade">Cartrade</keyword>, an automobile portal.<br />
<br /> <keyword id="6361865" type="CITY" weightage="40" keywordseo="Volkswagen">Volkswagen</keyword> has already announced it will hike prices by 2.5% from January.<br />
<br />
So, if you are planning to buy a car next year, factor in a marginal increase in car prices.



December Is The Right Month To Buy Cars

<img class="gwt-Image" src="/photo/57109505.cms" /> <br /> <keyword id="1980082" type="UNKNOWN" weightage="20" keywordseo="Cartrade">CarTrade</keyword>, India’s leading online automobile classifieds platform, has raised USD 55 million led by <keyword id="6367519" type="PERSON" weightage="20" keywordseo="Temasek">Temasek</keyword>, an investment company based in <keyword id="6356662" type="COUNTRY" weightage="20" keywordseo="Singapore">Singapore</keyword>, alongside a large US family office. This injection of capital will be used to support CarTrade’s growth plans through acquisitions, expansion into new areas such as auto <keyword id="25455" type="ORGANIZATION" weightage="20" keywordseo="finance">finance</keyword> and to further sharpen CarTrade’s services to consumers, dealers and OEMs.<br />
<br />
Following the merger of CarTrade with Carwale in January last year, CarTrade is India’s largest auto classifieds platform. The combined company has about 15 million unique customers per month, a leadership in both used and new cars and partner with approximately 8,000 new and used car dealer partners. The platforms list more than 200,000 used cars for sale and auctions over 200,000 vehicles to the wholesale market every year.<br />
<br />
“CarTrade is on a rapid growth trajectory. The funds raised will be used to drive growth through continued focus on strengthening our dealer and customer services and evaluating potential acquisitions. CarTrade is aggressively looking at the market for used car finance withless then 8% of used cars sold being financed through an organized financier. To address this opportunity CarTrade Finance was recently launched with the aim of financing the inventory for car dealers and to consumers who wish to buy used cars,” Vinay Sanghi, Founder and Chief Executive Officer, CarTrade said in a statement.<br />
<br /> Existing investors in CarTrade include <keyword id="6402698" type="COMPANY" weightage="20" keywordseo="Warburg-Pincus">Warburg Pincus</keyword>, Temasek, JP Morgan and March Capital.

CarTrade raises US$55 millionto drive growth in online
automobile classifieds

<ul><li><keyword id="2947589" type="General" weightage="20" keywordseo="droom" source="Orion">Droom</keyword> plans to raise ₹2,000 crore in fresh issue and the remaining ₹1,000 crore would be raised as an offer for sale.</li><li>It will use the capital to fund its organic as well as inorganic growth initiatives.</li><li>Droom was launched in 2014 by <keyword id="195858" type="General" weightage="20" keywordseo="sandeep-aggarwal" source="Orion">Sandeep Aggarwal</keyword>, who previously founded India’s fourth unicorn ShopClues.</li></ul>Online automobile marketplace Droom has filed its draft red herring prospectus (DRHP) for its ₹3,000 crore initial public offering (IPO). The Gurugram-based startup — which was valued at $1.2 billion three months ago — is backed by Toyota Tsusho, Digital Garage, Lightbox, Ellison Investments, SevenTrainVentures and others. <br /><br />Droom plans to raise ₹ 2,000 crore in fresh issue and the remaining ₹1,000 crore would be raised as an offer for sale. The seven-year-old startup has not yet revealed which investors will be selling their shareholdings in the upcoming IPO. <br />  <div type="image" title="Droom files for ₹3,000 crore IPO ⁠— the online car dealer wants ₹400 crore for acquisitions" msid="87664955" hostid="261"></div><br />Droom is the second automobile marketplace to hit the public market. Meanwhile, Cars24 — the highest valued player in the domain — has converted itself into a public limited company, a step taken by companies before going public.<br /><br />Droom ⁠— launched in 2014 by Sandeep Aggarwal, who previously founded India’s fourth unicorn ShopClues ⁠— has raised $333 million to date, as per business intelligence platform <a href="https://www.crunchbase.com/organization/droom/company_financials">Crunchbase</a>. A unicorn, in startup purlance, is a company valued over a billion dollars.<br /><br />CarTrade got listed on August 20 and it’s shares have fallen 17% since last one month<br /><br />Droom will use the proceeds from the IPO for its organic as well as inorganic growth initiatives, which usually includes acquisitions and investments in other businesses. <br /><br /><table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Usage<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Amount<br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funding organic growth initiatives<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,150 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Funding inorganic growth initiatives<br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹400 crore <br /><br /></td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">General corporate purpose <br /><br /></td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">N/A<br /><br /></td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table><br />The company in<a href="https://www.businessinsider.in/business/startups/news/droom-founder-explains-why-he-is-considering-a-us-ipo-and-where-he-intends-to-spend-the-money/articleshow/84917608.cms"> July 2021 highlighted</a> that it is exploring listing opportunities in both India and the US, even though it does not have any business in the United States.<br /><br />The success of the IPOs from Zomato, Nykaa and EaseMyTrip may have pushed Droom to go for the IPO in India itself, even though raising money in dollars would have left more funds, in rupee terms, to be spent in India. <br /><br />“I never thought, and I was a Wall Street analyst, that new age companies with no near-term visibility to profitability can be listed on BSE and NSE [National Stock Exchange], and can create a decent enough valuation,” Agarwal told Business Insider in an interview in July 2021. <br /><br /><strong>WATCH MORE: </strong>India's Latest Unicorn Is Prepping For An IPO Now<br />                                <div type="Video" msid="84897976" hostid="261" title="India's latest unicorn is prepping for an IPO now" dataSource="BUSINESSINSIDER" thumbUrl="https://denmark.timesinternet.in/cmslite/api/app/images.jpg?msid=84897976"></div><br />He further added that the stock appetite among the Indian investors has changed over the last couple of years and this is why they are open to listing in India now.<br /><br /><strong>SEE ALSO: <br /></strong><a href="https://www.businessinsider.in/business/corporates/news/the-mystery-behind-the-fall-in-tata-steels-shares-despite-a-seven-fold-rise-in-profit/articleshow/87663158.cms">The mystery behind the fall in Tata Steel’s shares despite a seven-fold rise in profit</a><br /><br /><a href="https://www.businessinsider.in/business/startups/news/purplle-is-planning-to-set-up-its-own-network-of-retail-stores-as-nykaa/articleshow/87649025.cms">Half a billion dollar worth Purplle is now taking the next step to take on Nykaa</a><br /><br /><a href="https://www.businessinsider.in/stock-market/news/fino-payments-bank-starts-trading-at-548-a-premium-of-5/articleshow/87659329.cms">Fino Payments Bank lists 5% below IPO price</a><br />

Droom files for ₹3,000 crore IPO ⁠— the online car dealer wants ₹400 crore for acquisitions

<img class="gwt-Image" src="/photo/52638172.cms" /><br />
<br />
June onwards, luxury cars in India costing more than Rs 10 lakh, either old or new, will be attracting an additional 1% duty, which would make them a tiny bit costlier. However, it will not affect the sale of used luxury vehicles. The additional duty will be payable to the dealer or private seller of the vehicle. <br />
<br />
Used car marketers say that even though the 1% additional duty is 'cumbersome,' this rule will not leave any impact on the sale of used luxury vehicles.<br />
 <br />
"The impact on used luxury vehicles sales will be minimum," said Vinay Sanghi, founder and CEO of CarTrade. The reason is the overall percentage of used luxury vehicle sales, which is too small for this impact to be worrisome for the traders. <br />
 <br />
Luxury cars in this range make up anywhere between 2 to 5% of the overall used car market, however, its growing at a rapid rate, faster than the overall used car market. <br />
<br />
<a href="http://stocks.img.askme.com/premium-videos/88luxurycar/1.jpg"><em>Image source</em></a><br />


Be ready to shell out extra duty on luxury cars, both old and new

New Delhi, <keyword id="6354720" type="General" weightage="20" keywordseo="ola" source="Orion">Ola</keyword> co-founder Bhavish Aggarwal on Monday said its electric scooter factory will be run entirely by women and employ over 10,000 women at full scale. "Aatmanirbhar Bharat requires Aatmanirbhar women! Proud to share that the Ola Futurefactory will be run ENTIRELY by women, 10,000+ at full scale! It'll be the largest all-women factory in the world!! Slightly smiling face," he said in a tweet. <br /><br />He also shared a video featuring the first batch of women hired to work at the facility. <br /><div type="javascript" title="Custom" contenttype="Video"><cdata><![CDATA[<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Aatmanirbhar Bharat requires Aatmanirbhar women!<br/><br/>Proud to share that the Ola Futurefactory will be run ENTIRELY by women, 10,000+ at full scale! It’ll be the largest all-women factory in the world!!🙂<br/><br/>Met our first batch, inspiring to see their passion!<a href="https://t.co/ukO7aYI5Hh">https://t.co/ukO7aYI5Hh</a> <a href="https://t.co/7WSNmflKsd">pic.twitter.com/7WSNmflKsd</a></p>&mdash; Bhavish Aggarwal (@bhash) <a href="https://twitter.com/bhash/status/1437305316308176898?ref_src=twsrc%5Etfw">September 13, 2021</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>]]></cdata></div><br />In a blogpost, Aggarwal said the company welcomed the first batch this week and "at full capacity, Futurefactory will employ over 10,000 women, making it the world's largest women-only factory and the only all-women automotive manufacturing facility globally".<br /><br />This is the first in a series of initiatives Ola is undertaking to create a more inclusive workforce and provide economic opportunities for women across the board, he added. <br /><br />Aggarwal said the company has invested significantly to train and upskill them in core manufacturing skills and they will be responsible for the entire production of every vehicle manufactured at Ola Futurefactory. <br /><br />"Enabling women with economic opportunities improve not just their lives but that of their families and indeed the whole community. In fact, studies show that just providing women parity in the labour workforce can grow India's GDP by 27 per cent," he said. <br /><br />He pointed out that in manufacturing, the participation of women remains the lowest at just 12 per cent. <br /><br />"For India to be the world's manufacturing hub, we must prioritise upskilling and generating employment for our women workforce," Aggarwal added. <br /><br />Ola had announced a Rs 2,400-crore investment last year for setting up its first electric scooter factory in Tamil Nadu. Touted to be the world's largest scooter manufacturing facility, the company had stated that it would initially start with 10 lakh annual production capacity and then scale it up to 20 lakh, in line with market demand, in the first phase. <br /><br />When fully completed, Ola Electric had claimed that its plant would have an annual capacity of one crore units, "that is 15 per cent of the world's entire total two-wheeler production". <br /><br />The company had, on August 15, unveiled its Ola S1 electric scooter in two variants — S1 and S1 Pro — at Rs 99,999 and Rs 1,29,999, respectively (ex-showroom including FAME II subsidy and excluding state subsidies). <br /><br />While the sale was to start on September 8, it postponed the sale process by a week to September 15 as it faced "technical difficulties" in making the website for purchases live for customers.<br /><br /><strong>SEE ALSO</strong><br /><a href="https://www.businessinsider.in/business/startups/news/loss-making-cars24-is-worth-more-than-a-profitable-cartrade/articleshow/86158047.cms" data-type="tilCustomLink">Loss-making Cars24 is worth more than a profitable CarTrade ⁠— here’s why</a><br /><a href="https://www.businessinsider.in/stock-market/news/reliance-infra-reliance-industries-zomato-and-other-top-stocks-to-watch-out-for-on-september-13/slidelist/86156619.cms">Reliance Infra, Reliance Industries, Zomato and other top stocks to watch out for on September 13</a><br /><a href="https://www.businessinsider.in/international/news/the-first-transgender-person-elected-bishop-in-a-major-christian-church-wants-to-inspire-hope-and-expand-peoples-minds-about-trans-people/articleshow/83528986.cms">The first transgender bishop in a major Christian church wants to inspire hope and expand people's minds about trans people</a>

You Searched For "cartrade car sale" and got 12 results

Loss-making Cars24 is worth more than a profitable CarTrade ⁠— here’s why

Kritti Bhalla

Three unicorns, hundreds of crore in loss and very little market share — What's the hype around online car retailers?

Kritti Bhalla

CarTrade IPO ⁠— the share sale by this profitable tech startup gets a unanimous call for ‘subscribe’

Bhakti Makwana

Mixed demand trends for autos in November as festive boost wears off but signs of rural recovery visible

Rounak Jain

CarTrade raises ₹900 crore from anchor investors ahead of its IPO, issue opens on Monday

PTI

After raising millions from investors, CarTrade is roaring loud with plans to list on bourses

BI India Bureau

EXCLUSIVE: This is what has changed in 2016 for consumers in the online car market

Tanya Dubey

December Is The Right Month To Buy Cars

Economic Times

CarTrade raises US$55 millionto drive growth in online automobile classifieds

BI India Bureau

Droom files for ₹3,000 crore IPO ⁠— the online car dealer wants ₹400 crore for acquisitions

Kritti Bhalla

Be ready to shell out extra duty on luxury cars, both old and new

BI India Bureau

Ola electric scooter factory will be run only by women, says CEO Bhavish Aggarwal

PTI