CarTrade Technologies will shut down the auto sales division of the recently acquired business – OLX or Sobek Auto India Pvt. Ltd.

CarTrade informed the decision to shut down C2B operations of auto transaction business amid unit economics challenges, in its exchange filing.

This comes two months after CarTrade acquired a 100 per cent stake in Sobek Auto India for ₹535.54 crore, which comprises the OLX Autos C2B transaction as well as the OLX classifieds business.

Sobek will continue to grow its classified business, while shut down of OLX’s auto sales division will also lead to headcount reduction.

“The Classified business (Olx.in – which includes both auto and non-auto verticals) of Sobek demonstrates profitability and substantial potential for future growth. Sobek has thus made the strategic decision to concentrate its energies and resources on the classified business, recognising its immense potential for sustained growth and value creation,” the company said in a statement.

As per CarTrade, OLX Classifieds currently has over 100 million downloads. With a wide spectrum of services across 12 diverse categories, including automobiles, real estate, electronics, and more, the platform claims to have almost 35 million unique visitors on a monthly basis and more than 30 million listings annually.

At the time of acquisition, CarTrade had informed that OLX India’s auto business was debt-free and held a cash reserve of ₹100 crore.

CarTrade competes with the likes of Cars24, Spinny, CarDekho, and Droom, among a few others.