India’s Mahindra to buy online car sales platformer Fifth Gear Ventures
NEW DELHI, NNA – Major Indian automaker group Mahindra & Mahindra Ltd. is set to buy a local online vehicle trade platform operator to integrate with offline sales and services in the world’s fifth-largest car market.
The Indian group said in a statement Friday it plans to acquire up to 100 percent of the paid-up equity share capital in Fifth Gear Ventures Ltd. for a value not exceeding 304.5 million rupees ($4.28 million) through Mahindra First Choice Wheels Ltd., a used car dealer in the group.
The Mahindra group signed the share purchase agreement Friday. The transaction will be completed by the end of March, the statement said.
Fifth Gear Ventures, founded in 2015 in Delhi, engages in selling new and used vehicles in the country through an e-commerce market platform. Its sales surged 21-fold to 55.4 million rupees in the fiscal year to March 2019 compared to FY 2017, according to the statement.