IGI Logo

About the Company

CarTrade Tech Ltd is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. They offer a variety of solutions across the automotive transaction value chain for marketing, buying, selling and financing new and pre-owned cars, two-wheelers, pre-owned commercial vehicles and farm and construction equipment. The company’s platforms operate under several brands such as CarWale, CarTrade, Shriram Automall, BikeWale, CarTradeExchange, Adroit Auto and AutoBiz. Their platforms are operated by 221 technology employees working at the company’s three technology centers as of June 30, 2021. Their technology platforms are both scalable and vertically integrated across the entire value chain, which allows them to address each step of the vehicle life cycle.

Objects of the Issue

* To carry out an offer for sale.

* To achieve the benefits of listing the Equity Shares on the stock exchanges.

Valuation

India became the 5th largest car market in the CY20. Domestically, the two -wheeler segment dominates the market in terms of volume, owing to a growing middle class and a young population. Moreover, the rising interest of companies in exploring the rural markets further aided the growth. By 2025, India is expected to become the world’s 3rd largest automotive market in terms of volume, driven by key factors such as digitization, changing consumer behavior and innovative services. Nowadays, the way consumers purchase cars is changing as they prefer surfing online and through digital channels. Further, websites and automotive portals act as buyer consulting zones and play a significant role in the purchase decision.

CarTrade operates on an asset-light business model and is well placed in the automotive value chain with a combination of online and offline related services. The company has a strong brand recall value and is gaining popularity amongst customers and stakeholders. Further, their investments in technology have made their platforms scalable in a highly capital-efficient manner. Going forward, the company plans to grow business by investing in technology, increasing online-offline presence and adopting a vehicle-agnostic approach. On the financial front, the company’s revenue in FY21 has seen de-growth owing to the Covid-19 impact but is expected to stabilize in the medium term. Amongst the industry players, CarTrade is the only profitable company which is a positive sign. We have a positive view on the company given its strong brands, technology-driven platforms and longstanding relationships with customers, dealers and other stakeholders.

Key Risks:

* i) Cyclical nature of the sector.

* ii) Highly competitive.

To Read Complete Report & Disclaimer Click Here

Please refer disclaimer http://ex.religareonline.com/disclaimer

SEBI Registration number is INZ000174330

Views express by all participants are for information & academic purpose only. Kindly read disclaimer before referring below views. Click Here For Disclaime