Singapore government’s investment fund Temasek-backed CarTrade is exploring a merger with rival CarDekho as investors push to create India’s largest online auto classifieds portal, two people aware of the development told BloombergQuint.
Amid mounting losses and competition, the investors want to focus on profitability, one of the persons quoted above said requesting anonymity as the talks are private. For CarTrade Temasek and private equity fund Warburg Pincus are exploring a deal, while Sequoia Capital is driving the talks from CarDekho, the person said.
Temasek is looking to invest close to $100 million, with majority of the funds earmarked for a secondary sale, the second person quoted above said. The deal has hit a roadblock as Amit Jain, co-founder of CarDekho and its largest shareholder, does not want to exit and discussions are on as to who will lead the merged entity, the person said. Jain instead wants to raise fresh funds at a higher valuation from a big investor that can sign fat cheques.
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