Car Trade Tech IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Car Trade IPO-Cartrade Tech Limited (“Cartrade”) was incorporated on April 28, 2000. Cartrade is a multi-channel auto platform with coverage and presenceacross vehicle types and value-added services.

Business –Cartrade Tech Limited (“Cartrade”) is a multi-channel auto platform with coverage and presence across vehicle types and value-added services. Their platforms operate under several brands: CarWale, CarTrade, Shriram Automall, BikeWale, CarTrade Exchange, Adroit Auto and AutoBiz. Through these platforms, they enable new and used automobile customers, vehicle dealerships, vehicle OEMs and other businesses to buy and sell their vehicles in a simple and efficient manner.

Revenue streams — Commissions and fees, advertising, lead generation for OEM, inspection related charges

Risks —

High and intense competition in industry

High valuations

Industry still in nascent stage so continuous threat of new entrants will be there

Strength

Leading marketplace for automotive sales with an effective ecosystem
Technology platform oriented business
Network effects can make it a commanding marketplace
Profitable and scalable business model

Future

The company is well positioned to benefit from used vehicle industry growth as well as digital ecosystem. With Network effects coming into place with time, and selective acquisitions it can grow big

Valuations

Valuations are high

Should we apply?

We can avoid subscribing or apply for listing gains and exit

Wait for correction to enter for long term

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