CarDekho acquires Naspers-controlled automobile site Gaadi.com
CarDekho.com, an auto portal owned and operated by Jaipur-based multi-vertical consumer internet company Girnar Software Pvt Ltd, has acquired Naspers Group-owned Gaadi.com, another automobile site, for an undisclosed sum.
Post acquisition, both the companies will continue to run as separate entities.
"We are unable to disclose the purchase price and the valuation due to contractually binding confidentiality terms," said Lakhmikant Gupta, chief marketing officer at CarDekho.
"Gaadi.com and CarDekho.com have their respective consumer bases who should continue to enjoy the services of their preferred portal as before. From a business standpoint, the market focus of Gaadi has been on the used-cars segment and that needs to continue without this deal affecting that area of strength. Similarly, CarDekho has built a strength in new cars business, and we don't want that focus to get diluted because of the acquisition," Gupta added.
The development was first reported by The Times of India.
CarDekho.com was founded by sibling Amit and Anurag Jain around six years ago. It is an online marketplace for users to buy and sell used as well as new cars. For new cars, the portal offers content for research as well as dealers' contact information. The site also offers information on car insurance and finance. For every buyer that goes to a dealer via CarDekho, the company earns a share. Similarly for the used car model, the firm charges dealers for displaying the inventory.
Local consumers can also list their used cars on the portal for free or opt for a premium listing. Apart from these, the site use advertisements as a means to generate revenues. This way the site follows a multiple-revenue model. The firm has also partnered with car manufacturers. It passes on leads to manufacturers and charges them only when the automobile is purchased.
Last November, Girnar raised $15 million in its Series A round of funding from Sequoia Capital. The firm also runs BikeDekho.com and PriceDekho.com, a price comparison and product discovery engine.
Gaadi.com was launched by Vivek Pahwa in 2007 and it was later acquired by Naspers in 2011. Pahwa recently launched a new automobile site called 99Cars.com. "Gaadi.com has done very well after the acquisition of Naspers in 2011. I think it is good for both the firm as together they can become the largest automobile platform in India," Pahwa told Techcircle.in.
Other players operating in the online automobile space include Times Internet's Zigwheels, Sierra Ventures-backed Carwale, Autoindia.com, Carazoo.com and MotorExchange.