CarTrade Tech IPO Review, Price, Subscription, Allotment, GMP

The platform covers multiple vehicle types and delivers value-added services across them.

CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz operate platforms using various brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto, and AutoBiz.

Company’s new and used vehicle customers, vehicle dealerships, OEMs, and other businesses all have access to these platforms, making it simple and efficient for them to buy and sell vehicles.

CarWale, CarTrade, and BikeWale were collectively visited by an average of 29.96 million unique users in the three months ending December 31, 2020.

Company’s Brands

• CarWale and CarTrade.
• BikeWale.
• Shriram Automall.
• CarTrade Exchange.
• Adroit Auto.
• AutoBiz.

CARTRADE TECH LTD.

IPO is Now Live

Issue Period

09^th Aug to 11^th Aug 2021

Strengths

Leading marketplace for automotive sales with a synergistic ecosystem

Brands and customer experience driving powerful network effects

Proprietary end-to-end technology platforms

Risks

May experience disruptions, failures or breaches of their technology platforms

May not be able to acquire, utilize and maintain domains and trademarks

The COVID-19 pandemic, or a similar public health threat, could impact its business

Company generates Revenue in what ways?

• The Use Of Auction And Remarketing Services Of Used Vehicles, As Well As The Commissions And Fees Received From Their Retail Customers, Banks, And Other Financial Institutions, For Firms In The Financial, Insurance, Vehicle, OEM, Leasing, And Fleet And Individual Operator Industries.

• Lead Generation For Oems, Dealers, Banks, And Insurance Companies, Along With Advertising On Carwale, Cartrade, And Bikewale.

• The Implementation Of Cutting-Edge Technology In A Range Of Technology-Based Services For Auto Manufacturers, Dealers, Banks, And Other Financial Institutions And Insurance Carriers.

• Inspection And Appraisal Services For Banks, Insurance Companies, And Oems.

The number of unique visitors, month over month, is expected to rise to 2.6 crore (up from 1.1 crore in FY20). Meanwhile, on the company’s websites and apps, which makes up 88.4% of the total audience, there will be 8.14 lakh vehicle listings available for people to search through, and 8.14 lakh vehicle buyers will find listings in the company’s auction sites.

As for used cars, annual sales are expected to grow from 44 lakhs in fiscal year 2020 to 83 lakhs in fiscal year 2026. According to Asit C Mehta, “The Indian automotive industry has substantial headroom for growth. This growth will undoubtedly benefit CarTrade.”

While we can’t assign a “subscribe” rating to the issue, Choice Broking assigned the issue a “subscribe” rating.

Professional management is exercised at the company; substantial institutional investors backing it include Highdell Investment (affiliate of Warburg Pincus LLC), with a 34.44 percent stake; MacRitchie Investments Pte Ltd (an affiliate of Temasek), with a 26.48 percent stake; CMDB II (private equity fund run by JP Morgan) and March Capital (which owns Springfield Venture International & MCP3 SPV LLC), with 9.79 percent ownership.