![]() ![]() The challenges, though, are equally daunting. “It’s a massive opportunity for us,” he underlines. From being a player in the auto market of 4 million new cars, 5-6 million used cars, and 10-12 million two-wheelers, CarTrade as a group is suddenly reaching out to a huge customer base with multiple offerings. For Sanghi and CarTrade, OLX indeed will change the trajectory of the entire company. “So, when you look at the synergies, the buy was compelling,” he says. While the latter is about new bikes, OLX happens to be the largest used-bike platform in the country. In fact, OLX fits in with BikeWale as well. “This combination is quite powerful,” he says. While OLX is powerful in used cars, CarWale is dominant in new cars. “There are perfect synergies,” claims Sanghi. The second-biggest plus of OLX is the seamless synergies it rings in. “Imagine, they don't spend money at all on the classifieds side of advertising,” he says. Classifieds is a highly profitable business. It’s a phenomenal number,” says Sanghi, talking about the most interesting part of the deal. “It is one of the few platforms in India which has got a staggering 32 million listings every year. While automotive makes up 50 percent of OLX India, the rest of the business is non-automotive and consists of electronics, jobs, furniture and real estate. “In one go, our user base has ballooned,” he says. Imagine somebody selling a car today on OLX, and the same person selling his mobile, furniture, electronics and house also on the platform. Sanghi explains CarTrade’s future makeover. What this means is how CarTrade, which so far was into the consumer and business side of cars and bikes, will transform over the next few years. “Suddenly, everybody with a mobile is my customer now,” he says, as his eyes lit up with the prospects of umpteen business and possibilities. OLX has had over 100 million app downloads, has over 35 million average monthly unique visitors and there are more than 32 million used listings across categories (see box). “It is a fantastic acquisition for our entire portfolio,” he says, listing out the first biggest plus of having a new member which is likely to change the nature of the family. Also read: How India's booming auto sector brought big gains for its parts suppliersįive months later-and over a month into completing an all-cash deal of buying OLX India for Rs535.54 crore-Sanghi’s excitement shows no sign of abatement. “This could be the opportunity of a lifetime,” he reasoned with himself. ![]() The picture was now complete, and Sanghi’s not-so-guarded apprehensions turned into unabashed excitement. The meeting lasted for 90 minutes, and over the next few weeks, OLX put its classifieds part also on sale. “What will happen to the classifieds side? Would users not get confused if there are two OLX entities? How will it impact business?” he wondered. “Is there anything wrong with the venture?” Sanghi wondered, as he got sucked in a vortex of queries. The biggest online classifieds player in India had put its C2B (consumer-to-business) automotive transaction business on the block. ![]() “Why are they selling the auto vertical?” was a natural question to ask. The meeting started, and even the battle-scarred founder started getting fidgety. The meeting was fixed at Waldorf Astoria Hotels & Resorts, and Sanghi was about to meet Robin Voogd, head of the classifieds vertical at Naspers, and head of M&As and strategy at OLX. “Obviously, it interested me straightaway,” he recalls. Would you be interested?” uttered the voice from the other side of a phone call. “OLX is looking to sell the auto business in India. “You can call it chance or serendipity,” says the founder, alluding to his interest in exploring the latest buyout offer. Meanwhile, in Dubai, it all started with a random call. A stickler for discipline, Sanghi’s track record of all his acquisitions had one common trait: Planning. The founder outlines other usual questions that bug a prospective seller: Do they have money? Are they capable of pulling off this transaction? What will they do with the employees? “In a way, they will try to judge you on all aspects,” says Sanghi, who was in Dubai in the third week of March to attend his board meeting. His envious past in cracking deals meant that he had boldly ticked the box of ‘seriousness’. CarTrade: On the fast lane in auto classifieds ![]()
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