( Letter from the Chairman and Managing Director )
Building a Connected Marketplace Ecosystem for the Digital Age
Esteemed Stakeholders,
It is with immense joy and satisfaction that I present CarTrade
Tech's annual report for FY 24.
As the digital marketplace evolves rapidly, CarTrade Tech continues to
stand as a catalyst for change. We actively cultivate an ecosystem of collaboration,
ensuring success for all stakeholders as we continue to revolutionise the marketplace and
craft a digital future in the process.
Our Reason for Existence
Recognising the fragmented nature of the digital marketplace and the
lack of a centralised destination, we embarked on a journey to transform the digital
buying and selling process. We developed a unified platform to streamline the entire
process, serving as a one- stop destination for consumers and businesses to buy &
sell.
Since our inception, we have achieved exponential growth through both
organic expansion and strategic acquisitions. M&A has consistently been a successful
strategy for us, allowing us to acquire market- leading brands and elevate them to new
levels. Our unwavering commitment lies in providing an integrated experience across our
consumer, remarketing, and classifieds segments. This approach ensures that we not only
meet, but also exceed the evolving needs of our diverse customer base.
Technology continues to be the cornerstone of our operations, enabling
us to achieve unprecedented scalability and innovation. By partnering with leading OEMs,
dealers, institutional sellers, and financiers and leveraging data-driven solutions, we
empower buyers
Since our inception, we have achieved an exponential growth through
both organic expansion and strategic acquisitions. M&A has consistently been a
successful strategy for us, allowing us to acquire market-leading brands and elevate them
to new levels. and sellers to navigate our digital ecosystem seamlessly. AI-driven
recommendations and other advanced tools further enrich the buying and selling experience,
ensuring that consumers effortlessly discover solutions tailored to their needs.
The Year at a Glance
In FY 24, our consolidated revenue reached Rs555 crores, marking a
remarkable 30% growth over FY 23 and achieving all-time high levels. This outstanding
performance was propelled by the achievements of our consumer group and the strategic
integration of OLX India, which has significantly broadened our market reach. Our profit
after tax (PAT) from continuing operations surged by 103% to Rs82 crores compared to the
previous year, demonstrating the strength of our business model.
This was particularly evident in Q4 FY 24, where we delivered a PAT of
Rs23 crores in a quarter. This performance provides a clearer reflection of our current
business position, as the revenue contribution from the OLX India business began to take
effect.
Furthermore, our strong financial foundation, reflected through our
debt-free status and robust cash balance, provides us with the flexibility to pursue
growth opportunities while also ensuring resilience against market uncertainties.
Our standalone consumer business continued to be the primary revenue
driver, with an increase in revenue from operations to Rs187 crores in FY 24, reflecting a
robust 20% year-over-year growth. The profit after tax for the consumer segment
impressively grew by 29% outpacing revenue growth and showcasing our improved
profitability and operational efficiency. This underscores our ability to deliver
sustained financial performance in a competitive landscape.
Despite challenges, our remarketing business showed signs of
stabilisation, maintaining steady revenue even as the repossession market declined due to
macroeconomic factors. The business effectively navigated these headwinds, successfully
expanding the retail segment, which now constitutes nearly 37% of this business.
We continue to lead as India's premier automotive platform,
bolstered by our status as the largest new and used car classifieds business and vehicle
auction platform. The acquisition of OLX India was a transformative step, granting us
access to a vast user base and increasing our consolidated average monthly unique visitors
to 7 crores.
Impressively, over 90% of this traffic is organic, meaning we do not
incur costs for it.
This strategic move aligns seamlessly with our vision to build a
dynamic online marketplace, providing a comprehensive platform for buying and selling
across various categories. Consequently, our brands have become synonymous with trust,
quality, and reliability.
The integration of OLX India has significantly bolstered our standing
as the premier destination for pre-owned goods in India. This expansion extends our reach
beyond the auto sector into diverse categories including homes, jobs, electronics, and
household items. This strategic initiative not only enhances our market presence but also
fosters sustained engagement across these categories.
As we advance, our online marketplace continues to offer a
comprehensive platform for buying and selling across a wide range of categories. The
integration of OLX India has significantly bolstered our standing as the premier
destination for pre-owned goods in India. It encompasses everything from cars and
electronics to real estate and furniture.
It also allows us to focus on expanding into non-auto segments such as
homes, jobs, electronics, and household items. Our goal is to achieve sustained engagement
and a robust market presence in these areas.
Despite this significant acquisition, we have maintained a robust cash
balance of over f750 crores, underscoring our financial strength. We continue to operate
as a debt-free company, consistently generating profits across all our existing
businesses.
Sustainability at Our Core
At the heart of our operations lies a commitment to reducing our
environmental footprint. Even though our business is mainly a digital marketplace, we have
formulated a sustainable sourcing policy that ensures our commitment to responsible
sourcing. This policy is transparent, manages health
Our workforce is pivotal to our achievements, and we prioritise their
well-being, safety, and professional growth. Through comprehensive training and
development programmes, we empower our employees to excel, fostering a diverse and
inclusive workplace that drives innovation and excellence. and safety risks, and minimises
the environmental impact of our value chain. This includes reducing waste, conserving
resources, and adopting eco-friendly technologies to mitigate climate impact and preserve
our planet for future generations. Also, as we focus on used cars and used products, we
are actively contributing to the circular economy while significantly reducing the carbon
footprint. Our focus on extending the lifecycle of products places us at the forefront of
sustainability efforts, promoting reuse and minimising waste.
Our workforce is central to our achievements, and we prioritise their
well-being, safety, and professional growth. Through comprehensive training and
development programmes, we empower our employees to excel, fostering a diverse and
inclusive workplace that catalyses innovation and excellence. Delivering exceptional
products and services is central to our commitment to customer satisfaction. We prioritise
transparency, reliability, and responsiveness to build lasting relationships based on
trust and mutual benefit.
Our CSR initiative, ‘DriveASmile,' epitomises our commitment
to social responsibility, driven by conviction rather than mere compliance. Founded with a
strong sense of social responsibility, this initiative aims to address the challenges
faced by mobility sector workers by facilitating donations through a transparent,
tech-enabled platform. Our mission is to provide tangible assistance and relief to these
hardworking individuals by connecting them with generous donors and organisations
committed to making a meaningful impact in their lives. Through this programme, we are
actively supporting community welfare and social causes, leveraging our resources and
partnerships to make a positive impact where it matters most.
Looking ahead, the immense market potential fuels our determination.
Our technological expertise is central to our mission, pushing us to redefine user
experiences with innovative digital solutions across both the auto and non-auto sectors.
A Promise to the Future
Looking ahead, the immense market potential fuels our determination.
Our technological expertise is central to our mission, pushing us to
redefine user experiences with innovative digital solutions across both the auto and
non-auto sectors. We continue to remain optimistic about the potential for sustained
growth, while streamlining the marketplace for efficiency and user-friendliness. As our
revenue rises, we anticipate that profitability will increase at a significantly faster
pace. This potential is driven by our efficient cost structure, characterised by minimal
marketing expenses and enhanced operational efficiencies.
Our focus on innovation will set new standards, empowering users with
cutting-edge technologies for seamless and transformative interactions. By leveraging
strategic partnerships and market insights, we will continue to broaden our reach and
unlock new opportunities. Guided by our vision, every decision will ensure our agility in
a dynamic environment, while our commitment to sustainability drives purposeful growth.
Closing Note
In closing, I would like to express my deepest gratitude to our
stakeholders, whose support has been the cornerstone of our success. The passion and
confidence within our ecosystem have remained strong, propelling us forward as we fulfil
our commitments and stay true to our strategic direction. As we conclude another year
filled with promise, we look forward to continuing our transformative journey, poised to
revolutionise the marketplace and shape a digital future.
Warm Regards,
Vinay Vinod Sanghi
Chairman & Managing Director