New Delhi: CarTrade Tech Ltd., the leading used car marketplace in India, has recently announced its acquisition of Sobek Auto India Pvt. Ltd., which encompasses the auto sales division of OLX India. The deal, valued at Rs 537 crore (US$70 million), is expected to be finalized within the next 21 to 30 days.

The primary objective of the acquisition is to bolster CarTrade's market share in India's online used car market. OLX India currently holds the second-largest market share, accounting for approximately 15%, while CarTrade enjoys the largest slice of the market at around 25%.

In addition to market expansion, CarTrade aims to diversify its product offerings through the integration of OLX India's range of services related to used cars, including car classifieds, car valuation, and car financing. This integration will allow CarTrade to provide a more comprehensive service to its customer base.

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This acquisition reflects the ongoing consolidation trend within India's online used car market. In recent years, numerous mergers and acquisitions have taken place in response to the increasing popularity of online car buying and selling in the country.

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The CarTrade-OLX deal follows a series of notable acquisitions in the online used car market in India. In 2021, CarDekho acquired Spinny for a sum of Rs 1,600 crore (US$210 million), and in 2022, Droom acquired CarWale for Rs 4,400 crore (US$570 million).

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These strategic acquisitions highlight the intensifying competition within India's online used car market. With projections indicating rapid market growth in the years ahead, companies are eager to consolidate their positions to capitalize on this expansion