Online automobile classifieds major CarDekho has acquihired Carbiqi. The deal consists of stock was signed a couple of weeks ago and Carbiqi team is joining CarDekho’s used car vertical in Gurugram soon – as per two sources privy with the details of the deal.
“Both companies have been engaged in talks for about two months for finalising contours of the deal. However, consensus over the deal has been reached recently,” revealed sources. Sources requested anonymity as they aren’t authorised to speak to media.
With Carbiqi deal, CarDekho is also set to enter the auction model where it will be buying cars from consumers on behalf of dealers. Later, dealers will bid for bought inventory as they do with Cars24.
“The Jaipur-based company will be opening up about dozen stores in Delhi and Bengaluru next month. Carbiqi has 4 stores at the moment in Delhi (NCR). Soon, these stores will embrace Gaadi’s branding,” added sources.
The stores would likely to be named ‘Auction by Gaadi’. Gaadi is CarDekho’s sister concern that deals in the used car segment. Floated by Akansh Sinha and Anubhav Deep – Carbiqi team used to deal in automotive service space under ServX brand name.
ServX was part of Y Combinator Winter 2017 Batch. However, the company pivoted late last year to become car buying platform for dealers.
Entrackr queries to CarDekho and Carbiqi were unanswered at the time of publishing this post. We will update the post as responses come in.
As of now, CarDekho has been dealing in classifieds (for users) and lead generation (OEMs and dealers) models for dealers in the used car segment. With the integration of the auction model, it will directly compete with Cars24.
Last month, Entrackr exclusively reported about CarDekho made a tentative closure of $75 million in the latest mega round from new as well as existing investors. Currently, it’s in advanced talks with investors to raise another $75-100 million.
This is the eighth acquisition by CarDekho in a decade old journey. Previously, it acquired Times Internet-owned Zigwheels, Gaadi, Volob, SaaS startup Connecto and roadside assistance Help On Wheels and three others.
Six months ago, Naspers-owned classified major OLX also opened three stores in Gurugram and many other stores in several more locations with a name ‘Cash My Car’ to compete directly with Cars24 with a similar customer-to-dealer auction model.
Recently, used car retailer Spinny had raised about $15 million financing round led by Accel Partners and SAIF Partners.
Since CarDekho is entering into auction model, it would be interesting to watch how it competes with the likes of Cars24 that had raked in $50 million round from Sequoia Capital which is also a large investor in CarDekho.