Mumbai: Auto classifieds firm CarTrade.com has acquired car-selling portal CarWale.com from Automotive Exchange Pvt. Ltd, the company said on Friday.

CarTrade.com, which is owned and operated by Mumbai-based MXC Solutions India Pvt. Ltd, did not disclose the size of the deal.

As part of the transaction, Axel Springer SE, Europe-based digital publisher, is selling its majority stake in CarWale to CarTrade.

The news was first reported by The Economic Times on Thursday in a report that said the deal was worth around ₹ 590 crore.

“We firmly believe the combination of CarTrade and CarWale will further strengthen our leadership in the new and used cars space. We can now direct our joint resources towards developing better products to enhance user experience," Vinay Sanghi, co-founder of CarTrade, said in a statement.

CarTrade, which only sells used cars, will now enter into the new cars segment as well with the acquisition.

“With this combination, we are one step closer to delivering a more comprehensive car buying experience—be it in new or used cars. CarTrade and CarWale have been leaders in different segments and as a combined entity, we are uniquely placed to drive more value for the entire auto industry," said Mohit Dubey, co-founder of CarWale.

The two companies combined have around 9,000 new and used car dealer partners and connect car manufacturers with car buyers. The firms list more than 225,000 used cars for sale.

CarTrade had raised in October 2014 ₹ 180 crore in a round led by Warburg Pincus with participation of Canaan Partners and Tiger Global.

In the used cars segment, start-ups have been raising funds recently. Droom Technology Pvt. Ltd raised $16 million in a round led by Lightbox in July this year, while Truebil (Paix Technology Pvt. Ltd) raised $500,000 in its first funding round from KAE Capital in June. In October, Jaipur-based Girnar Software Pvt. Ltd, which owns and operates CarDekho.com, acquired Zigwheels.com.

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