Online car reseller CarTrade Tech's board passed a resolution on Wednesday to invest Rs 750 crore for strategic acquisitions and investments in the automotive ecosystem. The online vehicle reseller mentioned that it aspires to strengthen its position by acquiring and investing in companies that would enable it to enter new markets or segments and bring new products and technologies to existing customers.
The online reseller informed that it would be looking to invest in all aspects of the automotive space including auto finance, leasing, insurance, servicing, car ownership, electric vehicles and new-age technology to further digitize selling and buying on their platform.
The company stated that it gets 34 million average monthly unique visitors and lists 1.2 million vehicles for auction, as per the annualized numbers from the second quarter for FY2022.
CarTrade Tech entered bourses in August, this year. It listed at a 1.11 per cent discount at Rs 1,600 on the BSE. The price band for the IPO was between Rs 1,585 to Rs 1,618 apiece.
The company's performance took a hit as vehicle purchases declined in a slowing economy hit by the COVID-19 pandemic. Its net loss widened to Rs 35.35 crore in the September-end quarter, compared to a loss of Rs 10.87 crore in the previous quarter. Vehicles listed for auctioning also spiked 73 per cent in the same period.
The reseller owns and operates multiple brands serving varied functions, its line-up includes CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz.
At the time of publishing, the company's stock was trading 0.51 per cent lower at Rs 904.64 on the BSE. It was trading 0.71 per cent down at Rs 903.05 apiece on the NSE.
