In a move that could reshape India’s online automobile marketplace, CarTrade Technologies Ltd. has confirmed that it is in talks with Girnar Software, the parent company of CarDekho and BikeDekho, for a potential acquisition of its new and used automotive classifieds businesses. The development marks one of the biggest consolidation attempts in India’s auto-tech sector, potentially valued at over $1.2 billion.

CarTrade Confirms Ongoing Discussions

CarTrade, a publicly listed and profitable auto classified platform, issued a formal statement confirming that the company has entered discussions with Girnar Software regarding a potential consolidation of CarDekho’s automotive classifieds units.

“These discussions are limited to the automotive classifieds businesses and do not include financing, insurance, or other non-automotive businesses of theirs,” CarTrade said in its official statement.

The company clarified that no binding or definitive agreement has been executed yet, though both sides are believed to be in advanced stages of negotiation, according to a CNBC-TV18 report.

Deal Structure and Estimated Valuation

If finalized, the transaction is expected to be a cash-and-equity deal, likely valued above $1 billion, according to market estimates. This valuation aligns with CarDekho’s last known valuation of $1.2 billion, achieved during its Series E funding round in 2021, when the company entered the unicorn club after raising $250 million.

Sources suggest that due diligence has already been completed, and both parties are now negotiating the final contours of the agreement. The merger would mark a landmark consolidation in India’s digital auto marketplace, combining two of the most established players in the space.

A New Phase of Consolidation in India’s Auto-Tech Market

Should the deal go through, it will mark a significant consolidation move in India’s online auto ecosystem. The merger would create a combined platform with immense market reach, intensifying competition against other leading players such as CARS24, Spinny, and Droom.

By combining CarTrade’s strength in dealer auctions, remarketing, and enterprise finance with CarDekho’s extensive consumer reach and data-driven technology, the potential integration could result in a dominant market leader in both B2B and B2C automotive services.

CarDekho: From Unicorn Status to Strategic Refocus

Founded in 2008 in Jaipur, CarDekho quickly became a household name in India’s online car marketplace. Its parent company, Girnar Software, operates multiple platforms, including CarDekho, BikeDekho, and InsuranceDekho.

After achieving unicorn status in 2021 with a $250 million raise, CarDekho faced industry headwinds that prompted a strategic pivot. In 2023, the company shut down its used-car retail business due to high operating costs, shifting its focus toward auto finance and insurance, which offer higher margins.

According to financial filings, Girnar Software reported ₹2,393 crore in operating revenue for FY24, marking a slight dip from the previous year. However, its losses narrowed by over 40% to ₹340 crore, reflecting an improving cost structure and tighter business focus.

The company is yet to disclose its FY25 financial results, but early indications suggest continued optimization in its core verticals. Meanwhile, its insurtech arm, InsuranceDekho, reported a net loss of ₹47.5 crore in FY25 against a top line of ₹1,290 crore, indicating a temporary dip after aggressive expansion.

CarTrade’s Strong Financial Position Fuels Its Expansion Plans

CarTrade, on the other hand, has emerged as one of the most stable and profitable players in India’s online automobile ecosystem. The company operates popular platforms such as CarWale, BikeWale, and OLX India, collectively drawing over 85 million monthly users.

It also owns Shriram Automall, a major player in vehicle auctions and remarketing, and has been expanding its enterprise remarketing and B2B financing businesses.

For the second quarter of FY26, CarTrade reported a revenue of ₹222 crore, marking a 29% year-on-year growth, along with a net profit of ₹64 crore, which is more than double the previous year’s figure.

Notably, CarTrade is debt-free and holds approximately ₹1,080 crore in cash reserves, giving it significant leverage to pursue strategic acquisitions and growth investments.

During its Q2 FY26 earnings call, CarTrade Chairman and CEO Vinay Sanghi hinted at the company’s expansion roadmap, stating:

“While we continue to look at M&A opportunities, it’s also important to note that we have a limitless TAM (Total Addressable Market), so we can keep growing organically.”

Exchange Filings Confirm the Discussions

CarTrade’s stock exchange filing on Tuesday officially acknowledged the reports about acquisition talks, clarifying the scope and stage of discussions.

The filing stated:

“The company has been in discussions with Girnar Software (parent of CarDekho) regarding a potential consolidation opportunity in the new and used automotive classifieds businesses (CarDekho and BikeDekho) in India.”

It further emphasized that the talks are confined solely to the automotive classifieds segment, excluding financing, insurance, and other non-automotive verticals.

At present, CarTrade has not executed any binding or definitive agreement, the statement reiterated.

The disclosure followed CNBC-TV18’s exclusive report, which first broke the news about the advanced-stage talks and hinted that the deal could surpass CarDekho’s previous unicorn valuation.

Stock Market Reaction and Investor Sentiment

Following the confirmation of the discussions, CarTrade Technologies’ stock saw a noticeable uptick. On Monday, the company’s shares rose 2.6%, closing at ₹2,970, just below its all-time high of ₹3,180.

The market capitalization of CarTrade Tech currently stands at over ₹14,000 crore, underscoring investor confidence in the company’s fundamentals and future growth trajectory.

The possible merger has been received positively by the investor community, as analysts see it as a synergistic consolidation that could lead to cost efficiencies, larger market share, and enhanced monetization opportunities in the online auto classifieds space.

Strategic Rationale Behind the Merger

The proposed acquisition fits squarely into CarTrade’s growth strategy, which involves expanding its ecosystem through strategic mergers and acquisitions.

CarTrade has consistently emphasized the importance of scaling through technology, platform integration, and diversified services. Acquiring CarDekho’s and BikeDekho’s classified businesses would not only expand its user base but also deepen its data capabilities and advertiser relationships.

On the other hand, CarDekho has been focusing on strengthening its auto finance and insurance verticals, which are excluded from the current deal. The sale of its auto classifieds arm could help the company unlock value and reallocate resources to its core high-margin businesses.

Implications for India’s Auto-Tech Landscape

If completed, this deal could redefine the structure of India’s automotive digital marketplace. The combined entity would likely emerge as the largest auto classified platform in India, with comprehensive coverage across vehicle listings, B2B auctions, dealer networks, and consumer finance linkages.

Such consolidation could lead to:

• Stronger bargaining power with advertisers and OEMs

• Higher visibility and trust among buyers and sellers

• Improved operational efficiencies through technology integration

• Reduced duplication of costs across marketing and data infrastructure

It may also trigger further consolidation waves across the sector as smaller players and startups reassess their positions in an increasingly competitive market.

Final Thoughts

While no definitive agreement has been signed yet, the potential acquisition of CarDekho’s automotive classifieds business by CarTrade Technologies represents one of the most significant consolidation moves in India’s auto-tech ecosystem in recent years.

If finalized, the merger would combine two powerhouses—CarTrade’s profitable, cash-rich model and CarDekho’s massive consumer footprint—to create an unparalleled leader in India’s digital automotive marketplace.

As both companies continue to negotiate, the deal’s outcome could set a new benchmark for strategic collaboration, scale, and digital transformation in India’s rapidly evolving automotive sector.

With inputs from agencies

Image Source: Multiple agencies

© Copyright 2025. All Rights Reserved. Powered by Vygr Media.