CarToq.com in talks with VCs to raise $5 mn

Automobile consumer interactive portal CarToq.com, part of content marketing company MWG, is looking to raise around $5 million for which it has initiated talks with venture capitalists (VCs).

The start-up portal, which has been funded by the parent group for close to about $1 million, is looking to expand its operations and offer new services.

"We have been almost in trial mode since we started in 2012, but six months back, we reached the inflection point as traffic increased on our site. Now, we are looking to expand our operations, for which we are looking to raise about $5 million," MWG CEO Nitin Srivastava told PTI.

He, however, declined to comment on the quantum of stake CarToq.com is looking to divest to VCs in order to raise the funds.

"By August, we are hoping to close the deal," he said.

He said the portal has been set up with an aim to create a consumer interactive platform, where prospective car buyers, and owners exchange information with fellow members while experts offer not only advice but also reviews of products.

"The differentiating factor for us is that it's a community forum for ordinary consumers, not automobile enthusiasts, and discussions here help them in taking a buying decision," he added.

The site had 1.4 million visits in May and the company expects it to jump to 2.5 million in July and end the year at five million, Srivastava said.

On the revenue side, he said the portal has been depending on online ads, besides sponsored contents for automotive brands.

"Some part of the fund that we are raising will go into creating a new segment of lead generation, under which the portal gets paid from a car company for converting a prospective customer visiting our site into to a buyer," he said.