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Tuesday
Apr 24 2001
| Updated
0013 hrs IST
1343 EST
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Autobytel-Indiacar.Com sign MoU
Kala Vijayraghavan
AUTOBYTEL.COM, one of the US's largest online automotive portal is in talks with Indiacar.com to pick up a 15 per cent stake in the portal. A MoU to this effect is understood to have been signed between the two. Arun Sanghi, managing director of Vitesse (the promoter of Indiacar.com ), however, declined to comment.
At present, Kotak Mahindra has a 30 per cent stake in the portal, while the promoters -- the MK Sanghi Group -- hold about 65 per cent. Edelweiss Capital holds about 3 per cent while Autocar India holds one and a half per cent stake. Autobytel has about seven million registered customers and generated about $26 bn in car sales in 2000.
Indiacar.com is hoping to cash in on Autobytel's business model, localise and implement it in the Indian market. Also, the tie-up would help Indiacar seek business opportunities in the global market.
Meanwhile Indiacar.com has recently acquired Cybersteering.com , another auto portal. According to Sanghi, there were no cash transactions since Indiacar agreed to take on substantial liabilities of Cybersteering.com .
"We have offered Indiacar.com stocks in return. The portal had a problem since it wasn't transaction-enabled and was merely a web-content site with a good user base" he said.
The acquisition of cybersteering.com gives Indiacar.com access to a very important user segment which was hitherto untapped.
Currently, most of the auto portals set up are in an unenviable position with very poor business given the sluggish market conditions. Indiacar.com was founded by Ashwin Sanghi, managing director of Vitesse (one of Maruti's largest dealers) in October 1999 and spun off into a separate company in January 2000. Kotak Mahindra Finance had taken a 30 per cent stake in it. While M K Sanghi, the chairman of Vitesse is also the chairman of Indiacar.com , Uday Kotak is the vice-Chairman.
Indiacar.com 's business model consists of a dealer referral service, dealer websites, financier referral service like Apnaloan.com where financial lenders directly receive enquiries from Indiacar and pay referral fees.
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