CarTrade: Vanguard Group Acquires $14M Stake in Indian Auto Marketplace
Deal News | Mar 24, 2025 | Aim Group
The Vanguard Group, a U.S.-based investment management company, recently acquired 713,835 shares in CarTrade Tech, an Indian auto marketplace, for INR1.2 billion ($13.8 million USD). This investment was made via the Vanguard Emerging Markets Stock Index Fund and the AC Vanguard Total International Stock Index Fund. The shares were purchased at INR1,804 each, marking Vanguard's first foray into CarTrade Tech. Meanwhile, private equity firm Warburg Pincus completely exited its investment in CarTrade Tech by selling its 8.6% stake for INR3.7 billion in September 2024. Coincidentally, CarTrade Tech's share prices hit a record high and soared by 25% in March 2025, indicative of the company's substantial growth. Of note, CarTrade Tech experienced an impressive 453% increase from its all-time low share price of INR341 on March 29, 2023. The company has shown significant revenue growth with a 27% year-on-year increase totaling INR1.7 billion up to December 2024. Established in 2009, CarTrade Tech operates over 450 physical outlets nationwide, including CarWale AbSure and OLX India franchises.
Sectors
- Investment Management
- Automotive Marketplace
- Private Equity
Geography
- United States – The Vanguard Group, the investment management company, is based in the United States.
- India – CarTrade Tech is an India-based automotive marketplace, which is the focus of the investment and divestment activities described.
Industry
- Investment Management – The Vanguard Group's active investment in CarTrade Tech signifies the role of investment management firms in global financial markets.
- Automotive Marketplace – CarTrade Tech operates as an automotive marketplace, facilitating car trades and sales across India through various channels.
- Private Equity – Warburg Pincus, a private equity firm, executed a significant divestment from CarTrade Tech, emphasizing private equity involvement in the automotive marketplace.
Financials
- $13.8 million – The amount spent by Vanguard Group to acquire shares in CarTrade Tech.
- INR3.7 billion – The proceeds from Warburg Pincus's sale of its 8.6% stake in CarTrade Tech.
- INR1.7 billion – CarTrade Tech's consolidated operating revenue for Q3 FY24-25.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Vanguard Group | Investor | Company | A U.S.-based investment management company that purchased shares in CarTrade Tech. |
| CarTrade Tech | Target Company | Company | An India-based auto marketplace that went public in 2021 and has seen significant share price movement. |
| Warburg Pincus | Seller | Company | A private equity firm that sold its stake in CarTrade Tech, fully exiting the investment. |