Cardekho.com, one of India’s most popular auto portal is about to buy Gaadi.com, an another major auto classified portal of India. The acquisition transaction is said to be $11 million. Gaadi.com is owned by ibibi group, a unit of South African internet and media giant – Naspers, while Cardekho is owned by Jaipur based Girnar Software Pvt. Ltd which is backed by Sequoia Capital.
Although, Ibibo group is paying attention to other bidders as well apart from CarDekho.com, to sell out Gaadi.com. However as per reports CarDekho’s offer is being considered foremost.
If the deal would finalized it would be the first consolidation move in a fragmented online auto classifieds market and also the combined online entity come out with after the acquisition will make the acquiring company a largest online auto classified market in the country by both traffic and revenue.
This will be the second acquisition of Gaadi.com ever since it came into existence in year 2008, at first, Ibibo Group had acquired Gaadi in 2011 for about $2 million. Now Ibibo groups wants to sell out Gaadi.com just after 3 years because it wants to focus on its travel portfolio websites – Goibibo.com and RedBus.in.
Moreover, this will be the fourth acquisition of an auto portal in India so far, in 2010 German media company Axel Springer and the India Today Group together acquired a 70.4% majority stake in auto classifieds business Carwale.com. In 2009, MotorExchange had acquired B2C auto portal CarTrade India.
Founded in same year as Gaadi.com, i.e. 2008, Cardekho.com served as many as 3.4 crore unique visitors over the first 4 years of its lifetime and sold over 1.7 lakhs used cars till date.
Jaipur based Girnar Software, which other than Cardekho.com, owns internet portals like Bikedekho and Pricedekho.com had received $15 million in funds from Sequoia in November 2013.