Axel Springer, India Today Acquire 70.4% Stake In CarWale.com
by Deeshesh Chheda
German Media firm Axel Springer AG and the India Today group have together acquired a majority 70.4% stake in Automotive Exchange Pvt Ltd, the owner of automotive classified ads portal CarWale.com.
Axel Springer has bought 52.1% stake, while the India Today group has bought 18.3% stake.
Axel Springer and the India Today group already have a 49:51 joint venture partnership in India to publish the fortnightly magazine Auto Bild. The acquisition of Carwale is a natural extension of this partnership.
The remaining stake (about 30%) is with the founders led by Mohit Dubey and also employees. The founders have sold part equity.
Carwale's investors - early stage fund Seedfund and Sierra Ventures - have sold their entire stake in this deal.
In 2006, Carwale raised funding from Seedfund, diluting about a 30% stake. It raised another $7 Mn in commitment from Sierra Ventures in 2008.