CarTrade Tech, a marketplace for buying and selling vehicles, will acquire OLX India’s automotive business, Sobek Auto India Private Ltd for ₹537 crore.

In the filing, CarTrade Tech said it will acquire 100 per cent stake in Sobek Auto, the automotive business of OLX India, for a cash consideration.

“CarTrade Tech Limited has entered into a share purchase agreement with M/s Sobek Auto India Private Limited, and its holding company OLX India BV for the acquisition of 100% stake of Sobek from OLX India BV,” said CarTrade Tech in its regulatory filing.

OLX automotive business comprises classifieds internet business and transaction-based platforms. OLX is the classified unit of Dutch investment firm Prosus.

In its annual report for the fiscal year ended March 31, 2022, Prosus noted that its classifieds business, primarily OLX, employed 11,375 employees globally, according to reports.

The OLX Group announced in January that it will be restructuring and laying off 15 per cent of its workforce, or more than 1,500 employees, globally, including in India, in response to concerns about the global crisis and impending recession fears.

CarTrade Tech, which had raised investment from Temasek Holding and Tiger Global prior to listing in 2021, has cash and cash equivalents in the tune of ₹1,185 crore as of March 31, 2023.

“The acquisition is in furtherance of the strategic objectives of the Company to undertake investments which provide synergistic benefits to the existing businesses of the CarTrade Tech,” said CarTrade Tech in its filing.

As per the filing, SobexAuto has recorded a turnover of ₹1,110.4 crore in FY22, as compared to ₹592.3 crore in FY21.

As part of the acquisition, Sobek has entered into an Intellectual Property License Agreement and a Transitional Support Agreement for the use of certain brands and technology, said CarTrade Tech.

This comes at a time when OLX Group and the classifieds business arm of global investment group, Prosus, have laid off 800 employees globally.

It was looking out for buyers and investors for its auto business, as per earlier reports. OLX recently shut down operations in some South and Central American countries.