Indiacar.com Promoters To Set Up Portal

Indiacar.com Promoters To Set Up Portal

The Sanghi group, promoters of the country’s premier auto portal http://www.indiacar.com, is in the process of setting up a dedicated portal – Indiabike.com – for the two-wheeler industry.

The investment involved in the new portal is approximately $1.17 million. According to Indiacar.com CEO Ashwin Sanghi: “We are funding it through internal accruals. Kotak Mahindra, our equity partner in Indiacar, has invested approximately $640,000 in the venture.”

The new portal will be operational in October.

Indiacar is also in the process of shifting 250 two-wheeler dealers registered with the auto portal to the new portal. Indiacar has already achieved break-even status. “During the last three months, while we have been generating revenues of around $13,751 to $14,810, expenses have been around $11,635 to $12,694 per month. We expect to declare a profit by the end of the year,” said Sanghi.

With the slowdown in the automobile sector having a direct bearing on their operations, Indian auto portals are shifting focus towards technological and consultancy services rather than depending on traffic generated by the site for revenue.

Indiacar is planning to leverage its registered user base of 800,000 users for tailoring solutions to market products. The portal is in the process of tying up with partners to promote a series of products. While the portal is in talks with Tata-AIG for their insurance products promotion, it is also doing promotion work for Timeshare resorts.

The portal has also tied up with Apnaloan for selling credit cards. Sanghi, however, said he did not expect these to contribute more than 10 percent to revenue in the next one year. Indiacar has also recently taken over two other auto portals – Cybersteering and Indiancar.

With Automart, the other major auto portal, gradually shifting to the brick-and-mortar format and with the taking over of Cybersteering, the third largest portal, Indiacar has started offering Web solutions to dealers. Sanghi said that in order to have more focus, Indiacar has focused on three auto finance companies – ICICI, Kotak and Apnaloan.

The Sanghi group is the principal promoter of Indiacar, while Kotak Mahindra has a 30 percent stake, Autocar 1.5 per cent and Edelweiss Capital 3 percent.

Reported by Newsbytes.com, http://www.newsbytes.com

10:08 CST

(20010912/WIRES ONLINE, BUSINESS, ASIA/)

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