AutoTrader.com parent Cox Automotive buys stake in Mahindra First Choice

Aditya · 25th November 2015, 10:39

Cox Automotive, the parent company of AutoTrader and Kelley Blue Book, has acquired a stake in Mahindra First Choice Wheels Ltd.

The transaction, through a secondary sale, saw one of Mahindra First Choice's early investors, HDFC, selling its entire stake. Phi Advisors, an initial private equity investor in the company, sold a part of its stake.

US-based Cox Automotive is a subsidiary of Atlanta based Cox Enterprises, Inc. (CEI). Its annual revenue is $ 17 billion. The company owns AutoTrader.com, the largest digital automotive marketplace in the US, and vehicle research platform Kelley Blue Book. It also owns brands such as Manheim, Dealertrack, vAuto and Xtime.

Mahindra First Choice Wheels owns IndianBlueBook.com, an online vehicle valuation company and other brands such as eDiig, and Autoinspekt. The company has over 650 franchise outlets in 300 towns across India. Recently, it launched a commercial vehicle franchise business in addition to its multi-brand pre-owned passenger cars business.

Mahindra First Choice had raised Rs 94 crore from San Francisco-based hedge fund Valiant Capital in March. The deal gave Valiant a 13.36% stake, valuing the company at about Rs. 700 crore at the time. Mahindra First Choice reported a profit of Rs. 1.92 crore on revenue of Rs. 44 crore in the fiscal 2015. Its revenue is expected to hit Rs. 70 crore this year.

GTO · 25th November 2015, 16:01

Wow, this is HUGE

!

AutoTrader is massive in the classifieds segment of USA. They have volumes, they're smart, they have tons of $$$ and they are super aggressive.

Importantly, autotrader.com has vast experience in the business of online classifieds. Mahindra First Choice might have a wide network (second only to Maruti True Value in India), but is poor in terms of online presence.

Mahindra First Choice has a lot to gain from AutoTrader's expertise.

25th November 2015, 10:39	#1
Aditya Team-BHP Support Join Date: Feb 2004 Location: Mumbai Posts: 17,835 Thanked: 77,063 Times View My Garage	AutoTrader.com parent Cox Automotive buys stake in Mahindra First Choice Cox Automotive, the parent company of AutoTrader and Kelley Blue Book, has acquired a stake in Mahindra First Choice Wheels Ltd. The transaction, through a secondary sale, saw one of Mahindra First Choice's early investors, HDFC, selling its entire stake. Phi Advisors, an initial private equity investor in the company, sold a part of its stake. US-based Cox Automotive is a subsidiary of Atlanta based Cox Enterprises, Inc. (CEI). Its annual revenue is $ 17 billion. The company owns AutoTrader.com, the largest digital automotive marketplace in the US, and vehicle research platform Kelley Blue Book. It also owns brands such as Manheim, Dealertrack, vAuto and Xtime. Mahindra First Choice Wheels owns IndianBlueBook.com, an online vehicle valuation company and other brands such as eDiig, and Autoinspekt. The company has over 650 franchise outlets in 300 towns across India. Recently, it launched a commercial vehicle franchise business in addition to its multi-brand pre-owned passenger cars business. Mahindra First Choice had raised Rs 94 crore from San Francisco-based hedge fund Valiant Capital in March. The deal gave Valiant a 13.36% stake, valuing the company at about Rs. 700 crore at the time. Mahindra First Choice reported a profit of Rs. 1.92 crore on revenue of Rs. 44 crore in the fiscal 2015. Its revenue is expected to hit Rs. 70 crore this year.
	(6) Thanks

25th November 2015, 16:01	#2
GTO Team-BHP Support Join Date: Feb 2004 Location: Bombay Posts: 70,534 Thanked: 300,732 Times View My Garage	Re: AutoTrader.com parent Cox Automotive buys stake in Mahindra First Choice Wow, this is HUGE ! AutoTrader is massive in the classifieds segment of USA. They have volumes, they're smart, they have tons of $$$ and they are super aggressive. Importantly, autotrader.com has vast experience in the business of online classifieds. Mahindra First Choice might have a wide network (second only to Maruti True Value in India), but is poor in terms of online presence. Mahindra First Choice has a lot to gain from AutoTrader's expertise.
	(4) Thanks