About the Company:
Cartrade Tech Ltd is a multi-channel auto platform with coverage and presence across vehicle types and value-added services.
Company operates platforms under several brands: CarWale , CarTrade , Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
Through these platforms, company enables new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.
In the three months ended December 31, 2020, company’s consumer platforms, CarWale, CarTrade and BikeWale collectively had an average of 29.96 million unique visitors per month.
Company is a multi-channel auto platform with coverage and presence across vehicle types and value-added services.
Company offers a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing of new and pre-owned cars, two-wheelers as well as pre-owned commercial vehicles and farm and construction equipment.
Company’s platforms are operated by 224 technology employees working at our three technology centers as of March 31, 2021.
Company’s Brands.
- CarWale and CarTrade.
- BikeWale.
- Shriram Automall.
- CarTrade Exchange.
- Adroit Auto.
- AutoBiz.
Key offerings by Company’s various platforms are as follows:
• CarWale and CarTrade platforms is visited by Car shoppers to research and connect with dealers, OEMs and other partners to sell and buy cars from the large variety of new and used cars offered by them. In addition, we engage with financing and automotive ancillary companies to offer their products and services on CarWale and CarTrade.
• Bikewale is visited by Customers looking for new and used two-wheelers can research and connect with dealers, OEMs and other partners to sell and buy two-wheelers from the large variety of new and used two-wheelers offered by them.
• Shriram Automall facilitates sales of pre-owned cars, two-wheelers, commercial vehicles, fourwheelers, and farm and construction equipment.
• CarTrade Exchange is an online auction platform and a used vehicle enterprise resource planning (“ERP”) tool. It is used by consumers, business sellers, dealers and fleet owners to sell vehicles to automotive dealers and fleet owners. Automotive dealers also use CarTrade Exchange to manage their processes for procurement, inventory management and customer relationship management (“CRM”).
• Adroit Auto offers vehicle inspection and valuation services used by insurance companies, banks and other financial institutions.
• AutoBiz provides new car dealers a CRM solution to manage their customers in an efficient manner.
How does Company generate Revenue?
• commission and fees from auction and remarketing services of used vehicles for retail customers, banks and other financial institutions, insurance companies, OEMs, leasing companies, and fleet and individual operators.
• online advertising solutions on CarWale, CarTrade and BikeWale for OEMs, dealers, banks and other financial institutions
• lead generation for OEMs, dealers, banks and other financial institutions and insurance companies.
• technology-based services to OEMs, dealers, banks and other financial institutions and insurance companies.
• inspection and valuation services for banks and other financial institutions, insurance companies and OEMs.
Reputed institutional shareholders:
Company’s marquee institutional shareholders include affiliates of Warburg Pincus, Temasek, JP Morgan and March Capital.
Competition in the Business.
Company’s key competitors include brands such as Cars24 (Cars24 Services Pvt Ltd), CarDekho and BikeDekho (Girnar Software Pvt Ltd), Droom (Droom Technology Pvt Ltd) and Mahindra First Choice Wheels Ltd.
Management Team:
- Mr. Vinay Vinod Sanghi (Designation: Chairman, Managing Director and Chief Executive Officer)
- Ms. Aneesha Menon (Designation: Executive Director and Chief Financial Officer)
Objectives of the Issue:
Offer for Sale (OFS): (Rs. 2998 cr)
- Company aims to achieve the benefits of listing the Equity Shares on the Stock Exchanges. Company will not receive any proceeds from the Offer and all such proceeds will go to the Selling Shareholders.
Peer Group Comparison:
There are no listed companies in India that engage in a business similar to that of Cartrade Tech Ltd. Accordingly, it is not possible to provide an industry comparison.
Positives for the Company:
Leading Marketplace for Automotive Sales with a Synergistic Ecosystem.
- Company’s platforms, CarWale and BikeWale, ranked number one on relative online search popularity when compared to their key competitors over the period from April 2020 to March 2021.
- while Shriram Automall is a leading used vehicle auction platform based on number of vehicles listed for auction for the financial year 2020.
- Among company’s key competitors, CarTrade Tech Ltd is the only and most profitable automotive digital platform.
Strong Brands and Superior Customer Experience Driving Powerful Network Effects.
- Company’s brands, CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz, are trusted brands for automotive buyers and sellers, and enjoy a strong brand affinity.
- Company’s brands, CarWale and BikeWale, ranked number one on relative online search popularity when compared to their key competitors over the period from April 2020 to March 2021
Proprietary End-to-End Technology Platforms.
- The end-to-end technology platforms largely developed by the in-house team allows company to offer a seamless solution to the customers. company has a team of 224 technology employees located at the three technology centers as of March 31, 2021.
- Due to company’s deep understanding and technology penetration in each of the businesses hence company is able offer a suite of products which can be deployed or sold to third parties such as automotive dealers, OEMs, financial institutions or fleet owners.
- For instance, company’s white-labelled solutions in CRM, used car ERP and other areas have been used by or licensed to BMW India Private Ltd (“BMW India”) and MG Motor India Private Ltd (“MG Motor”).
Profitable and Scalable Business Model.
- Company operates on an asset-light business model, operating only 114 automalls, a large majority of which we lease or rent from third parties.
- Company has invested significantly in building technology platforms that can manage considerably increased offerings without requiring sizable additional investments, and company’s growing scale has resulted in a decrease of the share of fixed costs.
- Together with commpany’s strong brands, longstanding relationships with customers, dealers and other stakeholders, and an expanding suite of offerings, company has created a profitable and scalable business model.
Supplement Organic Growth with Selective Acquisitions.
Company believes that it is well-positioned to pursue value-enhancing investments and acquisitions. Given the track record of successful consolidations, company believe that it is well positioned to take advantage of the expected consolidation and shift towards organized providers in the automotive industry.
Well Positioned to Benefit from Growth of the Automotive Sector and Digitalization.
- India was the fifth largest car market in the world in calendar year 2019 and is expected to become the third largest automotive market in the world in terms of volume by 2025.
- In addition to the growth in the automotive market, company expects that it will greatly benefitting from this automotive boom and also expect a further increase in digitalization of the automotive sector.
Founder-led Management Team backed by several marquee institutional shareholders.
- Company has a strong management team with significant industry experience and led by Chairman, Managing Director and CEO, Vinay Vinod Sanghi, who has over 30 years of experience in the automobile industry.
- Company is also backed by several marquee institutional shareholders, such as Warburg Pincus LLC, Temasek, JP Morgan and March Capital through their affiliates Highdell Investment Ltd, MacRitchie Investments Pte. Ltd., CMDB II and Springfield Venture International, respectively.
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 149.5 | 266.8 | 318.4 | 281.5 |
| Net Profit | (-6.8) | 25.9 | 31.2 | 101.0 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 9th August 2021 |
| Issue Closes on:. | 11th August 2021 |
| Issue Price | Rs.1585 – 1618 |
| Face Value | Rs. 10 |
| Retail Category Allocation | 35% |
| Minimum Lot | 9 shares |
| Minimum Investment | Rs.14,562 |
| Issue Constitutes | 40.43% |
| Issue Size | Rs. 2998 cr ($405 million) |
| Market Cap | Rs. 7415 cr ($1 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,85,32,216 |
| Equity Shares Prior to the Issue | 4,58,34,067 |
| Equity Shares after the Issue | 4,58,34,067 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | On or Before 17th August 2021 |
| Initiation of Refunds | On or Before 18th August 2021 |
| Credit of Equity Shares: | On or Before 20th August 2021 |
| Listing Date: | On or Before 23rd August 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06 :00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 37,06,443 | 0.01 | 0.59 | 35.45 |
| NII | 27,79,833 | 0.03 | 0.27 | 41.00 |
| Retail | 64,86,276 | 0.80 | 1.53 | 2.75 |
| Employee | —— | —– | —- | —- |
| TOTAL | 1,29,72,552 | 0.41 | 0.99 | 20.29 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 19.19 | 84.31 | 5.43% | 392.83 |
| Check IPO Allotment Status: |
|---|
Link InTime: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
| Company Contact Info: |
|---|
| CarTrade Tech Limited 12th Floor, Vishwaroop IT Park Sector 30A, Vashi Navi Mumbai 400 705 Maharashtra, India Tel: +91 22 6739 8888 E-mail: investor@cartrade.com Website: www.cartradetech.com |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C-101, 247 Park, 1st Floor L.B.S. Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India Tel: +91 22 4918 6200 E-mail: cartrade.ipo@linkintime.co.in Website: www.linkintime.co.in |
