CarTrade In Talks To Acquire Rival CarDekho In $1.2 Bn Deal

Listed auto marketplace CarTrade is reportedly in advanced stages to acquire rival CarDekho in a deal valued at over $1.2 Bn. The deal is expected to be a cash-and-equity transaction.

As per a CNBC TV report, the due diligence is done, and both sides are negotiating final terms. If the deal closes, it will mark one of the biggest consolidation in India’s auto tech sector.

The combined platform would bring together two long-running players in India’s online auto marketplace and increase competitive pressure on rivals like CARS24, Spinny and Droom.

Notably, CarDekho entered the unicorn club in October 2021 after raising $250 Mn at a $1.2 Bn valuation. But the company later shut down its used-car retail business in 2023 after high operating costs made it unviable.

Since then, the Amit Jain-led group has shifted focus to higher-margin areas such as auto finance and insurance. In FY24, parent company Girnar Software reported INR 2,393 Cr in operating revenue, a slight dip from the previous year, while losses narrowed by over 40% to INR 340 Cr. The company is yet to release its FY25 numbers.

Its insurtech arm InsuranceDekho, however, slipped into red in FY25, posting a net loss of INR 47.5 Cr against a top line of INR 1,290 Cr.

Meanwhile, CarTrade, which is listed and profitable, has been strengthening its position across vehicle listings, dealer auctions and remarketing. It owns Shriram Automall and has expanded its enterprise remarketing and B2B financing businesses in the past year.

In Q2 FY26, CarTrade reported INR 222 Cr in revenue, up 29% YoY, and INR 64 Cr in net profit, more than double compared to the year ago figure. The company is debt-free and sits on around INR 1,080 Cr in cash, giving it room for acquisitions. Its platforms, including CarWale, BikeWale and OLX India, draw over 85 Mn monthly users.

Notably, in its Q2 FY26 earnings call, Vinay Sanghi said the company was exploring acquisition opportunities. “While we continue to look at M&A opportunities, it’s also important to note that we have a limitless TAM, so we can keep growing organically,” Sanghi added.

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