Axel Springer, India Today Acquire 70.4% Stake In CarWale.com
German Media firm Axel Springer AG and the India Today group have together acquired a majority 70.4% stake in Automotive Exchange Pvt Ltd, the owner of automotive classified ads portal CarWale.com.
Axel Springer has bought 52.1% stake, while the India Today group has bought 18.3% stake.
Axel Springer and the India Today group already have a 49:51 joint venture partnership in India to publish the fortnightly magazine Auto Bild. The acquisition of Carwale is a natural extension of this partnership.
The remaining stake (about 30%) is with the founders led by Mohit Dubey and also employees. The founders have sold part equity.
Carwale's investors - early stage fund Seedfund and Sierra Ventures - have sold their entire stake in this deal.
In 2006, Carwale raised funding from Seedfund, diluting about a 30% stake. It raised another $7 Mn in commitment from Sierra Ventures in 2008.
Axel has also acquired 19.1% stake in India Today's e-commerce portal, BagItToday.com. The e-commerce site was launched by India Today last year and was completely owned by it so far. Axel Springer has also acquired the option of increasing its 19.1% to a majority stake in Bag It Today.
Axel Springler owns Auto Bild, the world’s biggest selling automotive magazine. With India Today Group, Axel Springler have been jointly publishing the Indian edition of Auto Bild since 2008.
Carwale claims to have 1.3 Mn unique users and more than 17 Mn page impressions per month. The classified ads portal makes money by selling customer leads to new car dealers and to used car brokers.
Axel Springer is the largest publishing house in Europe and controls the largest share of the German market for daily newspapersowns more than 80 online properties, including a few classifieds advertising websites, such as Stepstone.com (jobs site) and Immonet.de (Real-estate portal). It operates in more than 35 countries and owns more than 230 newspapers, including Fakt and Bild and magazines such as Auto Bild, Computers Bild and Sports Bild.
Some other players in this space are Autoindia.com, Carazoo.com, launched by Bangalore-based software maker Logix Microsystems, CarSalesIndia.com, DriveInside.com, Gaadi.com, and Indiaautomobile.com (part of Consim Info Group, owner of Bharatmatrimony).
This is the second acquisition in the online auto classifieds space in India: in August last year, CarTradeIndia.com was acquired by MotorExchange, which was subsequently funded by Canaan Partners.
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|2010-11-11||Automotive Exchange (Carwale.com) - Axel Springer, India Today||M&A||
Axel Springer AG
India Today Group
|2008-09-29||Automotive Exchange - Sierra Ventures, Seedfund||Venture Capital||
|2006-10-31||Automotive Exchange - Seedfund||Venture Capital||
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|Seedfund I||15|| Media
|http://www.seedfund.in/||Mahesh MurthyBharati JacobAnand LuniaPaula Ravindra MariwalaPravin Gandhi|
|Sierra Ventures|| IT/ITES/Technology
|Automotive Exchange Private Limited (CarWale.com)||
Tufail Ahmad Khan
|A-11, Priyadarshini Nilayam, Near Tilak Nagar, E8 Extension, Gulmohar||Automobile India||http://www.carwale.com|
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