Mahindra First Choice Wheels Ltd., a subsidiary of car manufacturer Mahindra & Mahindra, has acquired auto portal CarAndBike.com from NDTV Ltd. for ₹30.45 crores ($4.3 million U.S.). The acquisition is aimed at expanding Mahindra First Choice’s presence in the digital automotive space and to integrate online and offline user experience.
In a letter addressed to stock exchanges, Mahindra Group announced the acquisition of Fifth Gear Ventures Ltd. (FGVL), a Delhi-based unlisted public company that operates CarAndBike. Mahindra will pay $2.3 million U.S. in cash and the remaining $2 million U.S. through the issue of equity shares in Mahindra First Choice.
FGVL was founded in 2015 and turned over around $780,000 in revenue last year, a 50% year-over-year increase.
In a separate filing by NDTV, the media company announced the sale of its stake in the auto portal to Mahindra First Choice, as per a report by VC Circle. The acquisition is expected to be completed by the end of March.
Mumbai-based conglomerate Mahindra has a presence in over 100 countries and specializes in automotive, IT services, finance and hospitality. In 2018, Mahindra raised $15 million U.S. in funding from Cox Automotive, Valiant Capital and Phi Advisers. Its subsidiary, First Choice, boasts a commanding presence in the automobile sector in India, offering certified used cars and other auxiliary services.
CarandBike.com operates on a c-to-c model, facilitating a platform for buyers and sellers to interact and transact. The site also offers news and content on cars and motorcycles, along with a designated section to explore loan options.