CarTrade will pay Rs 156.37 crore to acquire the majority equity stake from Shriram Transport Finance Company as consideration for acquisition of shares of Shriram Automall India.
24 Jan 2018 | 11774 Views | By Autocar Pro News Desk
Shriram Transport Finance Company (STFC), Shriram Automall India (SAMIL) and MXC Solutions India (CarTrade) have entered into definitive agreements for the combination of the two businesses aimed at creating India’s leading used vehicle platform.
According to the agreement CarTrade, an online automotive business, will acquire majority stake in Shriram Automall ...
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Shriram Transport Finance Company (STFC), Shriram Automall India (SAMIL) and MXC Solutions India (CarTrade) have entered into definitive agreements for the combination of the two businesses aimed at creating India’s leading used vehicle platform.
According to the agreement CarTrade, an online automotive business, will acquire majority stake in Shriram Automall India (SAMIL), a leading physical auction platform for pre-owned vehicles from STFC. CarTrade will also outsource its 100 percent auction business to SAMIL along with offloading its equity to SAMIL in Adroit Inspection Services, which offers services like valuation and inspections to insurance companies, banks and non-banking financial institution.
Through this combination SAMIL is set to become an outright entity that offers both physical and online auction platforms to its customers. Under this partnership SAMIL expects its business to double in the next three years.
As per the transaction terms CarTrade will pay Rs 156.37 crore to acquire the majority equity stake from STFC as consideration for acquisition of shares of SAMIL. Further SAMIL will acquire 100 percent equity in Adroit Inspection Services from CarTrade by paying Rs 13 crore as consideration.
In the joint entity, Sameer Malhotra, who currently serves as the whole time Director and CEO of SAMIL will continue to hold his position.
Umesh G. Revankar, MD and CEO, STFC said, “This proposition will not only create an enhanced market place for transaction of pre-owned vehicles and equipment but also add value proposition to business via technology and digital expertise. Together this will also open avenues for us to enter into new segments of vehicle finance and we are confident to go further and serve our customer with better solutions and services.”
Vinay Sanghi, founder and CEO, 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.”
Sameer Malhotra, director and CEO, SAMIL said, “We’re growing exponentially at 30 percent year on year basis and were looking for more innovative thought partners to grow multi-fold at over 50 percent 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 are 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.”